US stocks ended the day higher yesterday as investors cheered the progress of US and China talks. They also appreciated Jerome Powell’s statement that the Fed was prepared to wait and see before making any more changes to interest rates. The biggest underperformer were retail stocks, which were weighed down by reports of weaker retail sales. In total, the biggest retailers lost more than $34 billion of value.

Today, traders will focus on key data from the United Kingdom and the United States. The UK will release key economic numbers. The monthly GDP change is expected to remain at 0.1%. The industrial production is expected to shrink by 0.7% while the manufacturing production is expected to shrink by 0.7%. On a MoM basis, the manufacturing production is expected to rise by 0.4%, which will be better than the 0.9% in the previous month. Traders will also focus on key Brexit developments.

From the United States, investors will receive key inflation numbers. The headline CPI for December is expected to fall to 1.9% after rising by 2.2% in November. On a MoM basis, the CPI is expected to contract by 0.1%. The core CPI, which excludes the volatile food and energy products is expected to remain unchanged at 2.2%. Real earnings are expected to increase by 0.3% in December after contracting by 0.1% in November.