Market movers today
The euro PMI services are due for publication. The first release of the Spanish and Italian figures is expected to confirm the stronger growth in the periphery countries. The Italian figure is set to increase from a low level, whereas the Spanish figure suggests a pick-up in growth in Q4.
In the US the ISM non-manufacturing is set to gain some momentum after it has been more moderate than ISM manufacturing lately.
We expect German inflation to show a sharp decline to 0.9% in December from 1.6% in November (consensus 1.4%). The expected decline is mainly due to methodological changes. This should lead to a new cycle-low in euro inflation and put pressure on the ECB but we do not expect more easing at this week's meeting.
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