German IFO and UK Q4 GDP data awaited – TDS

Research Team at TDS suggests that following on Tuesday’s strong increases in the euro area PMIs, they see upside risks to the German IFO survey, with both the expectations and current situation indexes posting gains of about 1 point each, against market consensus for very slight declines in both indexes.

Key Quotes

“The final euro area print of January CPI is also out, which will provide further details on the drivers of January’s sharp move up to 1.8% y/y.”

“UK: Today we get the second reading of Q4 GDP, with all the expenditure details for the first time. Markets are looking for the Q4 print to remain unchanged at 0.6% q/q, but after the strong IP and construction prints for December, the risks of an upward revision are greater than the risks of a downward revision, and in fact about 1/3 of analysts in Bloomberg are looking for an upward nudge to 0.7%.”