- Spanish inflation is likely to be a focus, with investors nervous about deflation in the Euro area. The consensus is for a positive but very low inflation print - but this reflects the competitive improvements of the Spanish economy, and should not trouble the ECB unduly.
- The UK offers revised GDP data for the fourth quarter (and such is the calibre of the UK ONS, there is a decent chance of significant revisions). The comprehensive house price index from the land registry should show house price growth broadly in line with nominal GDP.
- Chinese premier Li said that significant downward pressures on the Chinese economy would be prevented, which some in the markets have overreacted to and assumed implies a massive stimulus is just around the corner. The evidence of economic weakness is not sufficient for that in our view.
- US Fed speak continues, with Evans sounding exceptionally dovish in remarks overnight (forecasting rates barely above 1% in 2016). George is scheduled to speak today, and is likely to take quite a different approach to monetary policy tightening.
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