Euro PMIs are due for release and it will be interesting to see whether theimprovement in the financial ZEW expectations is mirrored in the PMIs. Themanufacturing PMI seems to lag the ZEW expectations a bit and we stick to ourexpectation of a decline as the order-inventory balance weakened in October. On theother hand, the service PMI should remain at the current level. Euro consumerconfidence is also released and we expect it have gone slightly higher after itincreased marginally in October. Finally, ECB’s Mersch will speak at 15:30 CET.
In the US the Markit PMI manufacturing is due for release and in line with the eurofigure we look for a slight decline as the order-inventory balance in October points tomore downside this month.
US headline CPI is expected to fall 0.1% m/m, leading to an annual inflation rate of1.6% y/y. For core CPI, we expect a rise of 0.1% m/m, below consensus of 0.2%m/m, which should keep the annual rate unchanged at 1.7%. Inflation pressures aregenerally low, as commodity prices are declining and wage increases are moderate.
US existing home sales is also due for release and we expect a small decline aspending home sales, which is a good leading indicator, have declined. Finally, USinitial jobless claims are released.
Norwegian Q3 GDP data is released today.
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