The main focus will be flash estimates for PMI in the euro area starting with Franceand Germany this morning. We expect the euro-area composite PMI to have movedbroadly sideways in February from the solid 54 level in January. That said, the weakerZEW economic sentiment released in Germany earlier this week suggests that there isdownside risk to our forecast.
In the US the flash estimate for the Markit manufacturing PMI will be released. It isour first indication of the strength of the manufacturing sector on a nationwide scaleand it does not really get the attention it deserves in the market. In line with recentregional manufacturing surveys we expect the flash Markit manufacturing PMI todecline further in February. January CPI is also due for release today. We expect coreinflation to remain subdued at just 0.1% m/m and headline inflation to increaseslightly faster due to higher gasoline prices.
ECB vice-president Vitor Constancio will be speaking at 11:30 CET in Brussels.
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Danske Bank