Danske Bank analysts suggest that politics remain in the spotlight, not least with the Brexit negotiations moving into the final hours before the EU summit on Thursday-Friday.

“As time is short, we remain sceptical that a deal will be reached and even if that is the case, we do not expect a majority in the House of Commons to support it,. Also, markets will continue to monitor the trade negotiations closely, after China made it clear yesterday that it is less optimistic than the US. IMF's annual meeting starts today with the release of the new world economic outlook. Many central bank officials are set to speak in the coming days, both from the Fed and the ECB, as both central banks enter the official silence period later this week. The ZEW survey is due for release today. It will be interesting to see whether the rebound in expectations and the fall in the current situation continue. The UK labour market report for August is due out as well. Employment has continued to increase at a decent pace despite slower growth and weaker hiring intentions in surveys and we focus on the momentum (continues further or the labour market is being hit).”