Macto news continues to dominate the agenda in the early part of the week with US inflation the top item tomorrow.
If nothing else, it should be a good indicator for the Fed's interest rate mood on Wednesday.
Bank of America forecasts headline and core US CPI to rise by 0.0% m/m and 0.3% month-on-month, respectively, in November.
The bank expects energy prices to hold down headline inflation while lodging away from home and used cars should lead to a firmer core.
“Gasoline prices fell sharply in November, and we expect overall energy prices to fall by 3.5% m/m in November after a 2.5% decline in October,” BofA said.
“This should be enough to offset a trend-like increase in food prices and a 0.3% increase in core inflation,” it added.
It expects the annual headline inflation rate to tick down a tenth to 3.1% with the core rate edging up to 4.1% from 4.0 on an annual basis.
“If the inflation data come in as we expect, it would broadly support our expectation for the first Fed cut to not come until June,” BofA said.
UK attention will focus on job numbers and average earnings, where the consensus is for wage growth again to exceed inflation at 7.7% year-on-year led by recent pay deals in the public sector.
Companies reporting:
Trading update: Gelion PLC (AIM:GELN)
Interims: Vianet Group (AIM:VNET) Plc
Finals: Chemring Group (LSE:CHG) PLC, RWS Holdings (AIM:RWS) plc
US earnings: Johnson Controls
AGMs/EGMs: Atalaya Mining (AIM:ATYM, TSX:AYM) PLC, Baillie Gifford Japan Trust PLC, BlackRock Greater Europe Investment Trust PLC, Henderson International Income Trust PLC (LSE:HINT), International Biotechnology Trust PLC, Pci-Pal PLC, Time Out Group PLC (AIM:TMO)
Economic announcements: Unemployment (UK), CPPI Inflation (US)