According to analysts at Danske Bank, the main event in the Nordic region is the Riksbank meeting with the policy announcement at 09:30 CEST.
Key Quotes
“The market is not expecting much and we tend to agree. The most significant piece of new information compared with the April policy meeting is that both the ECB and the Fed have hinted at adding more monetary stimulus. This must have come as a complete surprise to the Riksbank. At the same time, policy makers can point to relatively healthy growth (Q1 GDP came in above expectations), inflation at target and inflation expectations stable at 2%. Hence, the Riksbank is in no particular hurry to hike rates.”
“In the US, the ISM non-manufacturing survey is released today, which will be giving an interesting indication of whether the service sector is feeling the pinch from the troubles in the manufacturing sector and global economy. Market consensus expects a reading of 56.5. The service PMI has dropped in recent months to nearly 50, which has been a worry for the Fed. Hence a poor reading today would ignite expectations of a considerable upfront Fed easing.”
“We do not believe the UK PMI services index due out today should move much in either direction.”
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