Following a very packed week, including the UK elections, the FOMC and ECB meetings, as well as a “phase one” trade deal between the US and China, the calendar remains busy this week as well, with four central banks deciding on interest rates: The BoE, the BoJ, the Riksbank and the Norges Bank. The only Bank expected to act is the Riksbank, which is anticipated to hike rates, while the others are forecast to stand pat. Thus, focus will fall on signals and hints with regards to their future course of action.
On Monday, during the European morning, we get the preliminary PMIs for December from several European nations and the Eurozone as a whole. The bloc’s manufacturing index is forecast to have risen, but to have remained in contractionary territory. Specifically, it is expected to have increased to 47.3 from 46.9. The services PMI is expected to have ticked up to 52.0 from 51.9, while the composite one is anticipated to have inched up to 50.7 from 50.6.
At last week’s ECB meeting, the Bank kept interest rates untouched, with the statement not deviating from the previous one. At the press conference, the new ECB Chief, Christine Lagarde, reiterated Draghi’s words that...
Read the full financial markets weekly outlook on JFD Research.