In connection with the ECOFIN meeting EU finance ministers are expected to continue yesterday's euro-group negotiations about a resolution mechanism for failed banks. Progress has been made (see below), but an extraordinary euro-group/ECOFIN meeting could be arranged next week.
ECB-president Mario Draghi speaks in Rome in connection with a conference organised by Bank of Italy. Following last week's ECB meeting both Weidmann and Merch have talked about ECB's tools and any hints from Draghi will be followed closely.
In the data calendar main focus will be on industrial production in France, Italy, and the UK.
The US is gradually turning to the negotiations between Senate Democrats and House Republicans about a funding bill for the current fiscal year. It is the goal to have an agreement ready by the end of this week, well before the current temporary funding bill expires in mid-January. According to Reuters a deal could emerge today.
In Denmark and Norway inflation figures are due for release.
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