Tuesday preview: Eurozone third quarter GDP eases, analysts estimate

Eurozone economic growth data will be high on Tuesday’s agenda amid speculation the European Central Bank may increase stimulus in the New Year.

The final reading of third quarter gross domestic product is expected to be confirmed at a 0.3% quarter-on-quarter rise, down from 0.4% the previous three months. Annualised GDP for the three months to September is forecast to be unrevised at 1.6%, compared to 1.5% in the second quarter.

The ECB last Thursday decided to address the stagnant recovery by cutting the deposit rate by 10 basis points and extending the quantitative easing programme until March 2017 from September 2016. However, the central bank kept monthly asset purchases at €60bn, surprising analysts who had predicted an increase to about €75bn.

ECB President Mario Draghi at the weekend assured the market that there was no “limit” to what the monetary authority could do if the outlook for economic growth and inflation should worsen. Draghi called the measures the ECB has put in place a “recalibration” and “not a novel monetary policy change”.

“Mr Draghi was significantly more dovish in his tone in New York than the previous day in Frankfurt, where he failed to convince financial market participants that the package decided by the Governing Council was significant enough,” according to Barclays.

Elsewhere, data on Chinese November trade will be released early on Tuesday with analysts pencilling in a 2.3% year-on-year drop in exports and an 11.8% plunge in imports.

Closer to home, UK industrial and manufacturing production figures for October are expected to reveal a 1.2% year-on-year rise and zero growth, respectively. NIESR will also publish its November estimate for UK GDP.

Tuesday 08 December

INTERIMS
Daily Internet , Hornby, Polar Capital Technology Trust, Vianet Group

INTERIM DIVIDEND PAYMENT DATE
Rotala

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
GDP (1st release) (EU) (10:00)

FINALS
CareTech Holding, Infrastrata, OMG, RWS Holdings, Servoca, Treatt, Victrex plc, Zytronic

EGMS
Gulf Keystone Petroleum Ltd.(DI)

AGMS
Billing Services Group Ltd., C4X Discovery Holdings , GETECH Group, Schroder Oriental Income Fund Ltd., Ten Alps, Trading Emissions

UK ECONOMIC ANNOUNCEMENTS
BRC Sales Monitor (00:01)
Industrial Production (09:30)
Manufacturing Production (09:30)

FINAL DIVIDEND PAYMENT DATE
ISG