In the US session, CPI, Building Permits and Housing Starts figures were released. US Consumer Price Index declined 0.1% in December on a seasonally adjusted basis. Analysts were predicting 0.1% increase. Over the last 12 months, the all items index increased 0.7% before seasonal adjustment. The indexes for energy and food both declined for the second month in a row, leading to the decline in the seasonally adjusted all items index. The energy index fell 2.4% as all major component energy indexes declined. The food index fell 0.2% as the index for food at home decreased 0.5%, led by a sharp decline in the index for meats, poultry, fish, and eggs. 

 

Privately-owned housing units authorized by building permits in December were at a seasonally adjusted annual rate of 1,232,000. This is 3.9% below the revised November rate of 1,282,000, but is 14.4% above the December 2014 estimate of 1,077,000. Single-family authorizations in December were at a rate of 740,000; this is 1.8% above the revised November figure of 727,000. Authorizations of units in buildings with five units or more were at a rate of 455,000 in December. An estimated 1,178,400 housing units were authorized by building permits in 2015. This is 12.0% above the 2014 figure of 1,052,100. 

 

Privately-owned housing starts in December were at a seasonally adjusted annual rate of 1,149,000. This is 2.5% below the revised November estimate of 1,179,000, but is 6.4% above the December 2014 rate of 1,080,000. Single-family housing starts in December were at a rate of 768,000; this is 3.3% below the revised November figure of 794,000. The December rate for units in buildings with five units or more was 365,000. An estimated 1,111,200 housing units were started in 2015. This is 10.8% above the 2014 figure of 1,003,300.

 

Focus of tomorrow's session will be on ECB Meeting. Though, no change in monetary policy is expected, press conference should add some volatility to the markets. In the US part of the session Unemployment Claims and Philly Fed Manufacturing Index figures are scheduled for a release. Analysts anticipate decrease to 279,000 in unemployment claims, while almost no change is predicting in Philly Fed Manufacturing Index.

 

Figures to watch:

 

Minimum Bid Rate/ECB Press Conference (Thursday 14:30)

Unemployment Claims (Thursday 14:30)

Philly Fed Manufacturing Index (Thursday 14:30)