In view of analysts at Danske Bank, today’s key event will be the Bank of England meeting, in addition to the German industrial production data.
“Amid the ongoing Brexit uncertainty, we expect the Bank of England to be on hold until November. The new forecasts are likely to show a downward revision to the growth and inflation paths.”
“Watch out for Brexit headlines, as Theresa May is expected back in Brussels today, trying to garner support for concessions on the Irish border backstop. She is scheduled to meet Commission President Juncker at 11:00 CET.”
“In Germany, yesterday’s factory order data pointed to tentative signs that the car sector recovery started to pick up speed at the end of 2018. It will be interesting to see whether today’s December industrial production data shows a similar trend and whether the big drop in pharma production in November has reversed.”
“Later in the morning, the European Commission will also release its new economic forecasts. Markets will particularly pay attention to the extent of cuts to the euro area growth prospects.”