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A second tier day

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  • German ifo business sentiment data comes out in the wake of the softer German PMI business sentiment figures yesterday. German business confidence has been very robust, so the weakness in yesterday's figures is not seen as being too threatening.
  • The US has consumer confidence figures, and house price data. Two Fed speakers grace the agenda - Lockhart and Plosser - the latter a noted hawk. With uncertainty about the extent of spare capacity in the US labour market policy disagreement could become more intense at the Fed.
  • The UK offers retail, consumer and house price inflation and it is an interesting point to consider as to which of those matters most to the Bank of England. Although consumer prices are benign, deflation is not really a threat, but the housing market has been making headlines.
  • The head of Japan's GPIF pension fund said he was "not uncomfortable" with reducing the fund's domestic bond allocation, but that he did not see it as being the role of the fund to support domestic equity prices.

Listen to the audio version of this briefing.