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An economic smorgasbord

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  • Euro area consumer price inflation provides excitement. The consensus expectation is for a slight reduction in the rate to 0.3%, although it should be noted that the fears of additional disinflation forces did not materialise in the Spanish and German numbers yesterday.

  • The comprehensive measure of UK house prices is due (there is no evidence of a bubble outside of London). The Americans are offering income and spending data, Michigan consumer sentiment (which should bounce back) and Chicago manufacturing sentiment.

  • Japanese data today cannot really be chalked up as a win for Abenomics. Household spending was weak (though retail sales less so), and industrial production was disappointing.  Even allowing for consumption tax increase related volatility, this was softer data.

  • Geopolitical risk will continue to add volatility for financial markets, as traders try and interpret events in the Russo-Ukrainian crisis. The economic consequences of this seem largely priced in, but there still seems an inclination to react to garbled news reports.