Week Ahead – Jan 1st
12/29/2023 5:50:36 PM
In Europe, upcoming inflation report for the Euro Area, Germany, France, Italy, Netherlands, Poland, Turkey, and Russia will be closely watched. After a dip to 2.4% in November, Eurozone inflation is expected to rebound to 3% in December, driven primarily by the base effect. Germany is likely to see a decline in retail sales for November, marking the fifth month of no growth in six months, while the unemployment rate is expected to remain steady in December, at its highest level since May 2021. S&P Global will release the final PMI survey results for the Euro Area, Germany, and France, while Italy and Spain will provide preliminary estimates. In the United Kingdom, the calendar is light, featuring only the Bank of England's monetary indicators, Halifax house prices, and final PMIs.
In Asia, all eyes will be on fresh Chinese PMI results for insights on how Beijing’s stimulus measures from the fourth quarter may have impacted manufacturing at end of a year marked by strong macroeconomic headwinds for the world’s second largest economy. In Japan, investors await December consumer confidence gauges for hints on the BoJ’s policy trajectory. In the meantime, the first estimate for India’s GDP for the 2022-23 fiscal year is expected to show robust growth, and December PMI data is also awaited. Elsewhere, Singapore will divulge its fourth-quarter GDP, while Indonesia and the Philippines will unveil December inflation prints. A muted week for Aussie releases is headlined by the RBA’s Chart Pack and final PMI data.