Market movers today
Today, no global market movers are due to be released.
However, we have a very busy central bank week ahead, with the Fed, ECB, Band of England and Norges Bank meetings coming up and the EU summit taking place on Thursday and Friday, where progress in the Brexit negotiations will again be in focus.
In Denmark, the inflation figures for November are due out, balance of payments data, as well as the number of bankruptcies and repossessions for October.
In Norway we get November inflation data this morning where we look for a further rise in the core measure from 1.1% to 1.2% y/y (consensus 1.2%, Norges Bank 1.3%).
Selected market news
Ahead of the EU summit later this week, Brexit remains in focus, as Brexit secretary David Davis (who has been more or less removed from the negotiations as PM Theresa May has taken over herself) said t hat t he agreement on t he Irish border " was much more a statement of intent" than a binding agreement . Michael Gove and Boris Johnson both want a clean split from the EU aft er t hey backed May’s deal. The comments highlight that even though the negot iat ions have moved forward, it is too early for markets to really price out a Brexit premium just yet . Despite talks likely moving to transit ion period and future relationship now, we do not know much about what that would look like at the moment . EUR/GBP is currently trading at 0.88.
US President Trump is expected to del iver a speech on the US tax reform on Wednesday, while House and Senate Republicans t ry to sort out the differences in the two tax bills. Also a lot of demonst rat ions and increasing tension in the Middle East after Trump’s decision to recognise Jerusal em as Israe l ‘s capi tal .
Also in the US, Congress passed a short-term funding bi ll to avert a federal government shutdown on Friday. The bill will keep the government open until 22 December. US debt limit has been reinst ated and t he Treasury can now only issue debt using " ext raordinary measures" (basically swapping non-marketable debt t o market able debt ). T he " ext raordinary measures" are expected to run out late Q1 2018, where the US polit icians need to lift the debt limit or resuspend it .
No big movements in the financial markets overnight . Asian stock markets are up this morning and European/US equity futures are also pointing higher. US 10Y Treasury yield is more or less unchanged at 2.4%. EUR/USD is trading slightly below 1.18. Oil slightly down to 63.13 dollars per barrels.
