Some sentiment for the weekend
- US Fed Chair Yellen's remarks to the Senate were dovish on monetary policy, without implying any particular desire to change the scaling back of quantitative policy - and hence no real surprise. Focus shifts to the revisions to Q4 GDP, which are expected to be downward.
- Michigan consumer sentiment data in the US is expected to show some strength. Consumer sentiment is prone to overreact to news flow, but at the same time is less likely to be affected by the dusting of snow that hit the east coast (on the evidence of past weather distortions).
- Japan bombarded markets with data today - almost as if they were trying to hide bad news in the mass of numbers In fact there was not really much bad news - consumer prices supported by import prices, consumer spending up. Wage earners' spending as soft, and the PMI of manufacturing sentiment did slow.
- UK house prices (the comprehensive land registry index) are due. House price growth is likely to remain below the level of nominal GDP growth which suggests limited evidence of a bubble in the country at large. Euro area flash CPI is due, a focus for those concerned by deflation.
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