Calm Before the Storm

In reality this is most likely the calm before the calm. Markets are relatively flat this morning and they are unlikely to encounter too many shocks, or any storms, over the next week or two, provided the talks in the US regarding the fiscal cliff progress as expected. Should the initial stubborn stance, customarily adopted by both parties, not soften as the week progresses, then we could begin to see substantial movement within the markets as concern grows.

We start the week with very little economic data due out today and this theme will continue throughout the week, with relatively few pieces of key data being released in the run up to Christmas.

Please find a summary of this week’s economic calendar below:

10:00 EU Labour Cost
14:00 US Net Long-Term TIC Flows
14:30 ECB President Draghi Speech

BOE Inflation Letter
09:30 UK Consumer Price Index
09:30 UK Producer Price Index
09:30 UK Retail Price Index

09:00 German IFO – Business Climate
09:00 German IFO – Current Assessment
09:30 UK Bank of England Minutes
13:30 US Housing Starts
13:30 UK Building Permits

07:00 German Producer Price Index
09:30 UK Retail Sales
13:30 US Gross Domestic Product
13:30 US Personal Consumption Expenditure Prices
15:00 US Existing Homes Sales Change
15:00 US Leading Indicator

09:30 UK Gross Domestic Product
09:30 UK Public Sector Net Borrowing
13:30 US Personal Income
13:30 US Personal Spending