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More sentiment, as oil slides

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  • Oil price moves have been attracting global media attention. From a global perspective the first consequence of an oil price change is redistributive (moving wealth from producers to consumers, in this case), and the impact on global GDP is contingent on consumption patterns amongst producers and consumers.
  • Euro area service sector sentiment is expected to come in with a steady if somewhat slow pace of economic expansion. Divergence amongst the components of the Euro Empire are what is likely to matter most to markets..
  • Euro area retail sales are likely to show some signs of slowing - the data is nominal, but disinflation forces seem to be abating in the Euro area, so this is a real slowdown. UK service sector sentiment is expected to remain strong, as the Bank of England starts its two day deliberation process.
  • The US services ISM is forecast steady, indicating a strong economic expansion and implying strong domestic demand (also indicated by yesterday's import data). Three Fed speakers crown the agenda including the dovish dissenter Kocherlakota.