Performance, pegs and prices
- Chinese GDP hit its target for the year (coming in at 6.9%). Imagine that. The data was not a surprise. In the quarters ahead we would expect China's growth to continue to slow as structural forces dictate a lower trend rate.
- The volatility of markets has raised questions about currency pegs – Hong Kong and Saudi Arabia both being mentioned. It is worth remembering that pegs are political not market decisions, and we do not expect the pegs to break.
- German final CPI is due for December, and not likely to be exciting. The UK has the normal range of inflation figures, and the exciting prospect of Bank of England governor Carney speaking in London.
- The German ZEW economic sentiment survey (and its less watched Euro area equivalent) make an appearance, along with the US NAHB housing survey. Housing is far more important an asset than equities to US household wealth.