A key piece of economic data for next Monday will be the growth of industrial production in China, which at the same time will help to assess the global pace of economic recovery as China's production relies heavily on foreign demand.

On Tuesday, US retail sales will be a key piece in the US Consumption Dynamics puzzle. The weak reading should increase pressure on policymakers to approve fiscal stimulus, but the strong data will allow negotiations to be dragged out further, which leaves the US economy with little options to maintain momentum.

The CPIs of Germany and Great Britain for October should help investors to assess the state of economies before lockdowns. YoY inflation in Germany is expected to be negative in October (-0.3%), while in the UK it is expected to post modest gain (+ 0.6%). If the readings fall short of expectations, we could see increased pressure on local central banks to expand monetary support measures.

On Thursday and Friday, investors' attention will be focused on data on US home sales, weekly unemployment claims and the Philly Fed index of activity in the manufacturing sector. This data will help to gauge momentum in the US economy, which is an important variable in the fiscal deal equation. No major negative surprises are expected though as the US avoided lockdowns.

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