Ahead of tonight’s start of the much anticipated EU summit where Chancellor Merkel and President Sarkozy will seek talks of a more integrated EU and Eurozone with stricter regulation we have both the European Central Bank and Bank of England to provide some action.
ECB, BoE coming up: The additional 75 billion of QE injected into the economy at the last Bank of England meeting and the 25bps rate cut by the ECB have built up expectations ahead of tody’s meetings. Especially the ECB press conference will be interesting as markets will twist and turn every word coming out of President Draghi’s mouth about stepping up help for the beleaguered Eurozone. For an extensive review of the two events Nick Beecroft is your go-to guy.
Jobless Claims, Wholesale Inventories on tap: Jobless Claims crossed the 400,000 mark to the upside last week for the first time since October, but only by 2,000 and for now the downward trend remains firmly in place. Consensus predicts a 7,000 decrease to 395,000. Wholesale Inventories, also from the US, are expected to rise only mildly by 0.3 percent in October after a downward revised -0.1 percent in September, which meant a downward revision to 3Q’11. On the plus side of that, inventories should contribute more to fourth quarter GDP as a result.
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