On Monday UK and EU leaders met to discuss Brexit protocol, which resulted in an ‘extraordinary’ deal on the Northern Ireland protocol. In Rishi Sunak’s words, the deal “ delivers smooth-flowing trade within the whole United Kingdom, protects Northern Ireland’s place in our union and safeguards sovereignty for the people of Northern Ireland.”
The PM said that he and Von der Leyen will now be announcing the “Windsor framework”, marking what the prime minister described as a “new chapter”.
On the data front, investors will gain an insight into the UK’s housing market with the latest mortgage lending and BoE consumer credit set to be released tomorrow.
Speeches from the Bank of England’s MPC members continue. At lunchtime today, BoE Chief Economist Huw Pil will deliver a closing statement at the Bank of England Agenda for Research Conference, in London.
There will also be several speeches from other central banks over the coming days, so market-watchers will have lots to digest.
In the eurozone, Germany’s 10-year bond yield rose to the highest levels since July 2011, to 2.57%, amid increasing bets the European Central Bank will remain hawkish to deal with inflation, well beyond 2023.
We’ve just seen the latest annual inflation rate for France, which has crept up to 6.2% from 6.1% the year before.
The preliminary annual inflation rate for Spain has also been released, which showed a 1% increase compared to the month before.
Yesterday’s highly anticipated data from the U.S. Census Bureau revealed that durable goods orders in the US, sank 4.5% month-over-month in January. This marked the largest fall markets have seen since April 2020.
Later today, Federal Reserve Bank of Chicago president, Austan Goolsbee will speak.
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