Danske Daily – 8 September 2017

New research from Danske BankMarket movers today

With little interesting data out markets will focus on the situation in North Korea, the hurricane Irma hitting Florida and further digest the ECB meeting yesterday.

North Korea is expected to launch another Interballistic Missile (ICBM) tomorrow when it celebrates its founding day. China voiced support yesterday for further sanctions against North Korea but also wants to see renewed efforts to begin a dialogue, see article .

Hurricane Irma is expected to hit Florida on Sunday after causing severe damage in the Caribbean.

The ECB left its policy measures unchanged and President Mario Draghi confirmed that the bulk of decisions regarding the QE purchases beyond 2017 will most likely be taken in October. We still believe the ECB will announce a reduction in its QE purchases to EUR40bn per month in H1 18 at the next meeting in October. See also our ECB review: Warming up to QE extension in October , 7 September 2017.

In terms of economic data releases, it is a quiet day today. In the UK, keep an eye on the NIESR GDP estimate for August, as it is usually a good predictor of actual GDP growth. In Germany, labour costs data for Q2 are due to be released at 08:00.

In Sweden, household consumption in July is due while in Denmark, current account and trade balance data for July are being released this morning. The Riksbank left a dovish message yesterday despite keeping its policy measures including the repo rate path unchanged. The Riksbank also announced that CPIF inflation is now the formal target variable and reintroduced a +/-1 percentage point variation band. Neither has any implication for actual policymaking. See also Comment on Riksbank: Policy intact , 7 September 2017.

Selected market news