US next week data: focus will remain on Trump - Danske Bank

According to analysts from Danske Bank, the primary focus next week will remain on Donald Trump and what to expect of his administration. US data includes retail sales and inflation. 

Key Quotes: 

“Next week, the primary focus will remain on the Donald Trump win and any news on what to expect from the new Trump administration next year. Following the initial selloff in financial markets, markets have recovered since Trump’s victory speech, when he struck a more reconciling tone. We still need more information on what Trump actually plans to do in his first period as president to get a firmer grip of the implications of his win on economics.”

“On the US data front, we are set to receive a range of important releases, which should give us further insight on the state of the economy. Among the most important releases are retail sales, CPI inflation, manufacturing production, regional manufacturing indices and housing market statistics.”

“On Tuesday, retail sales data for October is due out. After a weak Q3, it will be interesting to see whether core retail sales (which feed into GDP growth) picked up in October, as it is one of the first important indicators we have for consumption growth in Q4. We estimate core retail sales grew 0.3% m/m in October.”

“On Thursday, CPI data for October is due out. We estimate the core CPI index increased 0.2% m/m in October, implying an unchanged core inflation rate of 2.2% y/y. (…)  We expect headline inflation to move higher in coming months due to higher energy prices. We estimate the CPI headline index increased 0.3% m/m, implying a headline inflation rate of 1.6% y/y in October”

“Also, we are due a range of Fed speeches, in which we expect the focus to be on the implications of the presidential election and the rate hike outlook for December and 2017.”