In the data calendar the main event today is the release of February retail sales in theUS. We expect headline retail sales to rebound 0.3% m/m on the back of a very weakJanuary where bad weather weighed on consumer spending. Despite the expectedrebound in February, the conclusion remains that consumer spending has lostconsiderable momentum in the US.
In Europe, the French consumer prices (HICP) deserves some attention as it is primesuspect for the unchanged euro area inflation in February as German, Italian, Spanishand Dutch inflation were all lower. We expect French inflation to have increased to1.0% y/y from 0.8% y/y mainly due to higher core inflation. If we are right, theimplication is that euro area inflation for February should be revised down to 0.7%y/y.
In the US at 15:00 CET, the Senate Banking Committee will hold nominationhearings for the Fed board of governors. Stanley Fischer (nominated as vicechairman),Lael Brainard and Jerome Powell (nominated for two ordinary vacantseats) will be present at the meeting. Finally, ECB president Mario Draghi isscheduled to speak late this afternoon in Vienna in connection with the SchumpeterAward Ceremony.
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Danske Bank