There was some good news for the eurozone yesterday, as figures released showed industrial production figures increased by 0.2% in October, which is a significant rebound from the 0.6% decline we saw in September. This was in line with what the markets had been expecting. Year-on-year, industrial output increased by 1.2% from the same month a year before, which much better than the expected 0.7% increase. This should have a positive effect on the GDP growth rate figures for the fourth quarter of 2018 and will certainly be welcomed given the recent trade war fears.
Regarding Brexit, there were reports that the EU has decided to wait and see what happens in the UK political landscape before deciding whether to consider an extension of the negotiating time allowed under Article 50. The results of yesterday’s ballot put talk of concessions back on track, although it remains to be seen whether any will be forthcoming.
Today we will see the German inflation rate for November, which is expected to show a dip to 2.3% from 2.5% in the previous month. The European Central Bank will also announce its interest rate decision, but it is certain rates will be kept on hold this time around (and for the foreseeable future). There will, however, be an accompanying press conference which could prove interesting.
