Economic calendar: Retails sales and industrial production from US in markets spotlight

• European stock market opens lower after strong index sell-off in China
• Final inflation data from the Eurozone (10 AM GMT) for December
• Retail sales (1:30 PM GMT) and industrial production data from the US (2:15 PM GMT) 

After a disastrous session for China's indices, which tested levels from October 2022 minima, European benchmark also loses after markets open. The main events of the day will focus on the US economy, where investors will learn about retail sales and industrial production data. Given the dollar's rally over the past few days, weaker readings could potentially put pressure on the dollar index and bring more volatility to the market after yesterday's remarks from the Fed's Waller, who signaled 75 bps of rate cuts in 2024 and a slow pace of cuts. Both announcements stood in opposition to market expectations and supported the dollar. However, it seems that potentially weaker readings from the US economy, if they follow yesterday's dismal regional NY Empire State reading, could weaken the 'greenback'. Investors will focus their attention especially on retail sales, which will shed more light on the strength of the US consumers in December, the most important month for sellers.

Key macro readings

10 AM GMT - Eurozone, final CPI inflation (December 2023). Expected: 2.9% Previously: 2,9%

• CPI m/m: Expected: 0.2% Previously: -0,6%
• Core CPI y/y. Expected: 3.4% Previously: 3,4%

1:30 PM GMT - US, retail sales for December m/m. Expected: 0.4% Previously: 0,3%

• Core sales m/m. Expected: 0.2% Previously: 0,2%

1:30 PM GMT - Canada, RMPI Reading. Expected: -1.6% Previously: -4,2%

2:15 PM GMT - US, Industrial production m/m. Expected: -0.1% Previously: -0.2%

3 PM GMT- USA, NAHB Index Expected: 39 Previously: 37

7 PM GMT - USA, Fed Beige Book

9:30 PM GMT - USA, API oil inventories. 

Q4 2023 earnings season (US)

• Charles Schwab (CHWB.US) - before the session
• US Bancorp (USB.US) - before the session
• Citizen Financials (CFG.US) - before the session
• Kinder Morgan (KMI.US) - after the session
• Alcoa Corp (AA.US) - after the session

Central bankers' speeches:

• ECB Cipollone (8:30 AM GMT)
• ECB Vasle (8:45 AM GMT)
• ECB Simkus (9:15 AM GMT)
• ECB Villeroy (9:30 AM GMT)
• ECB Vujcic (11:30 AM GMT)
• Fed Bowman (2 PM GMT)
• Fed Barr (2 PM GMT)
• ECB Lagarde (3:15 PM GMT)
• ECB Nagel (6:30 PM GMT)
• Fed Williams (8 PM GMT)