This week the US will be publishing inflation rate, retail sales, industrial production and the preliminary reading of Michigan consumer sentiment. Elsewhere, other important releases include UK Q4 GDP growth, alongside inflation, retail trade and industry, and construction output; Germany and Japan Q4 GDP growth rates. Investors will also react to US-China trade talks and will see if the impasse over border security funding can be solved in the US Congress to avoid a second partial shutdown.
In the US the highly anticipated consumer price index report for January will probably show a decline in inflation to over two-year low of 1.5 percent from December’s 1.9 percent on lower energy prices, while the core inflation is set to edge down to 2.1 percent from 2.2 percent.
The UK will publish its preliminary estimate of fourth-quarter GDP growth; Growth forecasts point to a 0.3 percent expansion in the last three months of the year amid continuing Brexit uncertainty, well below the 0.6 percent advance recorded in the previous period.
Elsewhere in Europe, several countries including Germany will publish preliminary estimates of fourth-quarter GDP growth while the Eurozone is set to provide a second estimate of its economic performance during the same period. The bloc’s largest economy is seen growing a meager 0.1 percent, after contracting for the first time since Q1 2015 during the previous period amid declines in both exports and household consumption.