- Futures on DAX and FTSE point to higher opening in Europe
- UK data stronger than forecasts, final German inflation unchanged
- Attention shifts to inflation expectations, Michigan data and US bank results
Wall Street recovered very quickly from Wednesday's sell-off driven by higher CPI data, although benchmark results may be a bit misleading, as broad stock sentiment outside the largest technology stocks remains weaker. Today, attention will shift to the results of the financial sector, where the market will pay attention to banks' interest earnings, but especially to potential loan loss provisions, which could suggest that institutions are anticipating consumer weakness. At 4pm, Michigan data will be released, where particular attention will be focused on inflation expectations, an increase in which could put a bigger question mark over inflation momentum overseas.
Economic calendar
7:45 AM - Final inflation readings from France
- HICP y/y: 2.4% forecast and 2.4% in the first reading (2.3% CPI after seasonal adjustment)
- HICP m/m: 0.3% forecast and 0.3% in the first reading (0.2% seasonally adjusted)
8 AM GMT - Final inflation readings from Spain
HICP y/y: 3.2% forecast vs. 3.2% in first reading
- HICP m/m: 1.2% forecast vs 1.2% in the first reading"
1:30 PM GMT - US import/export prices
- Exports: 0.3% forecast vs 0.8% previously
- Imports: 0.3% forecast vs. 0.3% previously
3 PM GMT - Consumer Sentiment by University of Michigan: 79 forecast vs 79.4 previously
- Current conditions: 81.3 forecast vs 82.5 previously
- Long-term (5-year) inflation expectations: 2.8% vs. 2.8% previously
- Short-term inflation expectations (1-year): 2.9% vs. 2.9% previously
Speeches by central bankers
- 12 AM GMT- ECB Elderson
- 2 PM GMT - Fed Collins
- 6 PM GMT - Fed Schmid
- 7:30 PM GMT - Fed Bostic
- 8:30 PM GMT - Fed Daly
Company results (before the US session)
- BlackRock (BK.US), JP Morgan (JPM.US), Wells Fargo (WFC.US), Citigroup (C.US)
