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Weekly Focus – One Step Closer to a US-China Trade Agreement?

Market movers ahead

  • In the US, PCE core inflation is set to come in just below the Fed’s 2% target
  • In the euro area, falling energy prices will drag headline inflation lower
  • Brexit negotiations will continue to be high on the agenda with an EU summit on Sunday and uncertainty about political backing in the UK
  • Newsflows around the upcoming meeting between Chinese President Xi Jinping and US president Trump, likely to occur on 1 December, will be a key market theme
  • Chinese PMI manufacturing reading for November may drop below the 50 benchmark

Weekly wrap-up

  • Politics (Brexit, US-China trade talks and Italy) in focus rather than economic data this week
  • Brexit one step closer to a deal, but uncertainty prevails, while Italy is one step closer to an EDP
  • Conciliatory tones from Trump in a potential Xi-Trump ceasefire in the trade war between China and the US.

Full report in PDF.

Danske Bank
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