Calm in the eye of the storm
- There is not much of note on the data calendar today – Germany and the UK offer industrial production, but this is old news. US consumer credit data is due, but the 2017 growth story is about consumer spending supported by a tight labor market, not by credit.
- The euro has stabilized after its post-Italian referendum mini-rally. The political situation there is not necessarily that clear (competing dates for a general election are being suggested), but European investors do not seem any more inclined to sell their own currency in consequence.
- Media reports suggest US President-elect Donald Trump will appoint Iowa's Governor Terry Branstad as the US ambassador to China. Branstad knows Chinese President Xi Jinping, and his appointment may mitigate some of Trump's seemingly hostile tweets on China last weekend.
- The UK Office of National Statistics revealed that an error had crept into UK current account data; the deficit is smaller than thought. These things happen. The revision is less important than the reminder that markets should not be too trusting of numbers. Economists should be revered, economic data should not.