We expect Fed to replace the current Operation Twist programme with outright Treasury purchases at the FOMC meeting next week.
The deadline for a deal on the US fiscal cliff is moving closer and we expect Congressional leaders to meet for further negotiations.
In the euro area, the main release is flash PMIs but politics will also be in focus with the EU summit and an extraordinary ECOFIN meeting scheduled next week.
We expect Chinese hard data to confirm soft data indications of a moderate recovery.
In Scandinavia we will get inflation data for Sweden, Denmark and Norway.
Along with inflation, industrial production data and employment will provide the Riksbank with the last pieces of information ahead of its decision on 18 December.
Global Update
ECB president, Mario Draghi, surprised the markets by announcing that there had been a "wide discussion" on rate cuts at this month's ECB meeting.
Data released this week pointed to a bottoming in the global business cycle with increases in PMIs in the euro area and China, upward revisions in US core capital goods orders and a jump in German factory orders.
The US manufacturing ISM nevertheless declined as manufacturers reduced inventories in November. This leaves the sector better positioned to grow once demand picks up.
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