Eurozone PMIs and ECB amongst market movers today – TDS

Analysts at TDS point out that ahead of today’s ECB decision, we get the flash PMIs for Dec and they’re marginally above consensus for French services at 60.2 (mkt 60.0) and a bit further above for German manufacturing at 62.8 (mkt 62.0), but look for a subdued market reaction ahead of the ECB decision. 

Key Quotes

“For the ECB, we look for the statement to remain unchanged for Oct, with all forward guidance unchanged. In the intro statement, we think that the new macro forecasts will be the main focus. In the press conference, we look for Draghi to try to keep the focus on the upbeat growth outlook, and confidence that underlying inflation trends will improve, likely leaving EUR little changed on the day, but with the potential for more of a lift in bund yields upon further details on the APP composition and the reduction in purchases of government bonds.”