With all eyes focused on the EU summit last week, the event
turned out to be an anti-climax, as leaders failed to draw any substantial
conclusions from the meeting.

It is still unclear when and in what form the European
Banking Union may be set up, whilst though it wasn’t on the official agenda,
Spain ‘s bailout speculation is put on hold for now whilst it stubbornly
continues its self sustenance.

With all eyes focused on the EU summit last week, the event
turned out to be an anti-climax, as leaders failed to draw any substantial
conclusions from the meeting.

It is still unclear when and in what form the European
Banking Union may be set up, whilst though it wasn’t on the official agenda,
Spain ‘s bailout speculation is put on hold for now whilst it stubbornly
continues its self sustenance.

Demand for Spanish debt increased, driving yield prices down
and enabling the troubled nation to continue to fund itself through the
markets. Indications that any bailout announcement is not in the proximity and
the lack of progress from the summit could also mean investors will get
restless about the perceived lackadaisical attitude of euro zone leaders.

One boost for Rajoy was a convincing win for his Popular
Party in his home region. The victory can be seen as an endorsement of the way
that the Spanish Prime Minister is leading the nation, suggesting that a
bailout announcement would be unopposed.

Google’s poor data last week prompted the biggest run on
currencies, in particular the pound, as investors rushed back to the safe haven
dollar. This may suggest that investors haven’t digested any frustration in the
euro zone.

Minutes from the MPC meeting have shown that committee
members are split on whether or not to implement further easing measures to
assuage concerns of an ailing performance. 
Whilst this week, the UK’s GDP figures released for Q3 will provide an further
information on any improvement the economy made since Q2’s contraction.

Today there is a distinct lack of data to be released,
however during the week we can look forward to euro zone composite PMI, German
IFO Business Climate, US New Home Sales and US GDP.