German IFO data in limelight on a relatively quiet day – Danske Bank

In view of the analysts at Danske Bank, as we enter a relatively quiet day on the data front, market focus remains on news from the Trump administration and indications in the UK of when Article 50 is likely to be triggered after yesterday's Supreme Court verdict.

Key Quotes

“The German IFO expectations survey marks the most important economic data release in the European session. We have seen strong leading indicators in the December PMIs and other German survey indicators. ZEW released last week also showed an increase in expectations although the current situation figure was the strongest. We thus expect the IFO figure to increase further in January. Together with the strong PMIs, these survey indicators imply quarterly growth in Q4 of around 1%, significantly above the 0.2% growth in Q3.”

“The Italian constitutional court will hold a hearing regarding the new electoral reform for the lower house. The hearing could influence market perception of the risk of snap elections.”