All eyes will be on China Tuesday, when it releases its fourth-quarter gross domestic product data alongside other key economic data. Consensus is for 6.9% growth year-on year, while LCG Head Analyst Brenda Kelly believes we could expect to see a certain amount of stability returning to the equity markets should the data come in as expected.
If it fails to meet expectations, Brenda says it could drive commodities and equity markets that some bit lower.
Looking further ahead into the week, according to current market consensus, the odds are now favouring a rate cut from the Bank of Canada next week Wednesday, as oil prices continue its slump.
The ECB also meets to decide on monetary policy next Thursday, and investors will be listening carefully to Mario Draghi’s tone, given the evident split in the ECB policymaking camp. Wrapping up the week ahead, Brenda gives a technical outlook on the FTSE, crude oil and her trade idea of the week, EURGBP