Week Ahead – Dec 11th
12/8/2023 5:40:30 PM
In Europe, the ECB and the BoE are anticipated to maintain current interest rates, given signs of a cooling inflation but investors will be closely watching for indications of impending rate cuts. Also, Switzerland and Norway's central banks will be deciding on the course of monetary policy. On the economic front, flash S&P PMI readings are expected from the Euro Area, Germany and France. It is predicted that the Eurozone's private sector activity will continue to contract in December, albeit at a slower pace; the manufacturing sector is experiencing its least severe contraction in seven months, while the service sector is also shrinking at the slowest rate in five months. Furthermore, industrial production is set to decline for the second consecutive month in October. In Germany, the ZEW Indicator of Economic Sentiment is forecasted to decrease from an eight-month high. Other data releases include the Euro Area's trade balance, Germany's wholesale prices, and final inflation figures from France and Italy. Turkey's industrial production and unemployment rate, as well as Russia's trade balance, will also be disclosed.
In the United Kingdom, the ONS will issue key reports on employment and growth, including monthly GDP, manufacturing, construction, and foreign trade. Consumer sentiment will be gauged by GfK, while S&P will update on the performance of the manufacturing and services sectors.
In China, economic indicators for November will continue to shed light on the impact of a series of stimulus measures and liquidity injections from Beijing, following up on mixed data reported for the period so far. Investors await industrial production, retail sales, the unemployment rate, housing prices, and new yuan loans. In the meantime, the BoJ’s Tankan Large Manufacturer’s Index is expected to rise to a multi-year high in the fourth quarter. In India, November inflation figures are expected to show a fresh acceleration in retail prices, backing the RBI’s withdrawal of accommodation policy. Elsewhere, the Bangko Sentral ng Pilipinas will decide on its policy rate, while South Korea will unveil its unemployment rate.
Finally, In Australia, investors await a batch of key labor data and the NAB business confidence index for November. Additionally, New Zealand will release its third quarter GDP.