Market movers today
• US housing starts and permits. Following the strong rise in the NAHB housing index yesterday it seems the somewhat softer housing activity data are behind us. Housing starts are likely to jump after a big drop in April. Permits, on the other hand, are expected to fall slightly after a big rise in April.
• We expect US core CPI to rise 0.1% m/m in May, slightly lower than the consensus estimate of 0.2% m/m. Inflation is low in the US at the moment, giving Fed more room to wait for improvement in employment before it starts tapering.
• The German ZEW index will be the main data release in Europe. We look for a rise in sentiment to 41 in June from 36.4. This is slightly higher than consensus at 38.0.
• UK inflation is expected to rise to 2.6% from 2.4%.
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Danske Bank