MNI European Morning Briefing

     LONDON (MNI) - There is a pretty full calendar Tuesday, with the UK

inflation data and the ZEW survey set to dominate early proceedings.

     The European calendar gets underway at 0630GMT, with the publication of the

French October non-farm payrolls data.

     At 0930GMT, the UK inflation report will be released, including both the

November and consumer inflation numbers.

     The ONS October house price index will be published at the same time.

     UK CPI Inflation is expected to have remained at 3.0% in November, the 2017

peak, having hit the level in both September and October, meaning Bank of

England Governor Mark Carney will have once again narrowly escaped letter

writing duty.

     The median expectation is for a 0.2% rise in prices on the month, for an

unchanged 3.0% result on the year. Likewise, core CPI and RPI are expected to

come in unchanged at 2.7% and 4.0% respectively.

     Back on the Continent, at 1000GMT, the latest ZEW expectations survey will

cross the wires.

     The US calendar kicks off at 1100GMT, with the publication of the NFIB

Small Business Optimism Index.

     At 1330GMT, the latest US PPI data will cross the wires.

     Final demand PPI is expected to rise 0.3% in November after 0.4% increases

in the previous two months. Energy prices are expected to rise after a flat

October reading, while food prices are expected to temper a bit after 0.5% gain.

Excluding food and energy prices, PPI is forecast to rise 0.2% after an

above-expectation 0.4% increase in the previous month that was led by a 1.1%

jump in trade services prices. Excluding trade services as well as food and

energy, PPI is expected to post a modest gain.

     The Redbook Retail Sales Index is set for release at 1355GMT, followed by

the Kansas City Fed LMCI at 1600GMT.

     Late US data sees the Treasury Budget published at 1900GMT.

     The Treasury is expected to post a $132.0 billion budget gap in November,

down slightly from the $136.7 billion gap in November 2016.

     ECB President Mario Draghi speaks at 1900GMT, although the comments are not

expected to be policy related.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com