Market Movers ahead

• Eurozone core inflation was probably low again in May – though that will hardly cause the ECB to cut rates – while overall inflation most likely rose decently.

• We estimate that US consumer confidence is heading higher and that this will be reflected in the coming week’s figures.

• A string of data releases from Japan is expected to confirm that the economy is picking up.

• GDP data is due from Sweden and Denmark. Swedish numbers could increase pressure to cut rates. Important figures for April are due from all three Scandinavian countries.

Global Update

• Uncertainty on the Chinese economy and global monetary policy triggered turmoil in the markets – but we see this as a correction, not the start of a new trend.

• US Fed signalled that a scaling down of the QE programme has moved closer.

• PMI figures show that China’s upswing is slowing, but probably just temporarily.

• Pronounced market movements in Japan bring its very accommodative monetary policy into question.

• Pressure for a rate cut in Sweden is mounting, though the labour market is not as bad as unemployment figures might suggest.