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Growing pains

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  • It appears that the credit rating agencies still exist - who knew? One of them (it does not matter which) chose to cut Finland's AAA rating on Friday, while putting France on negative watch. Clearly there is little new information for markets in these actions, but they do underscore the growth challenge of the Euro area.
  • German wholesale price inflation is scheduled today, and is expected to continue to show deflation tendencies. However, commodity price inflation, which will be affected by the weaker Euro, may start to show up in this level of price data.
  • Chinese trade numbers are due. With recent overreactions as to the health of the global economy, the data may attract heightened attention. Chinese exports are obviously sensitive to some form of global demand. Chinese import patterns are likely to start to shift however, with the changing focus of domestic growth.
  • The US is not offering much today. The Fed's Evans joins the long list of speakers, but this close to the FOMC meeting there is not likely to be a great deal of new or insightful comment.

Listen to the audio version of this briefing.