In the view of the Danske Bank research team, today, European markets will digest yesterday's FOMC messages with the Fed giving clear indications of being on hold.

"In terms of data, October flash inflation prints and the advance Q3 GDP figure are due for release in the euro area. Headline inflation is expected to fall to 0.7% due to base effects in the energy component. However, based on yesterday's country releases there are upside risks to the estimate. We expect the core print to come in at 1.0%, unchanged from the September release. We will also get the preliminary Q3 GDP print where we expect a 0.2% q/q reading. In Q2 we already saw signs that domestic demand is slowing. PMIs took a further plunge in September, pointing to almost stagnant Q3 growth. We still think though, that the service sector can compensate for some of the weakness from the ongoing industrial recession and hence look for a quarterly growth rate of 0.2% q/q.”