Central Banks and trade amongst market movers ahead – Danske Bank

Danske Bank analysts are expecting Riksbank to raise its policy rate from by 25 basis points to 0% at its policy meeting on Thursday despite a weakening economy.

Key Quotes

“We expect Norges Bank to signal an extended period on hold both verbally and via the new rate path.”

“The US-China trade talks will remain in focus, especially the mood between the two sides and the likelihood of a phase two deal in 2020, which we continue to see a 50% chance of happening next year.”

“Preliminary December PMIs in the US, Japan and Eurozone are likely to provide evidence of a slight pick-up in manufacturing activity.”

“On Thursday, we expect the Bank of Japan (BoJ) to keep quantitative and qualitative easing with yield curve control in place, with a strong easing bias if the economic outlook deteriorates.”