The coming week is heavy on releases in the US with consumer prices, retail sales, the first regional PMI readings for January and housing data all due out. Retail sales are due to be released on Thursday.
There is a busy week ahead in China with Q4 GDP and the rest of the economic data scheduled for release next week. Overall the data should confirm that the Chinese economy has bottomed out and started recovering in Q4.
Euro area industrial production is expected to have posted another decline in November, though we will look for first signs of improvement.
Global Update
As expected, the ECB kept all rates unchanged and it appears that the discussion on rate cuts is over - at least for now - as the rate decision was unanimous. This has lifted the euro and pushed rates significantly higher.
Southern European government bond markets continue to perform very strongly.
In the US it has been very quiet both in terms of political news and economic data releases. Congress is currently in recess and the big fight over the debt ceiling and spending cuts is not likely to kick off until after inauguration day on 20 January.
In Japan, the LDP-led government in the past week announced a new JPY1trn fiscal stimulus equivalent to about 2% of GDP.
The increase in Chinese inflation should prove temporary.
Record-high Danish current account surplus.
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