Will the US Non-Farm Wage & China Inflation Boost Market Speculation?


Will the US Non-Farm Wage & China Inflation Boost Market Speculation?

Monday – ECB President Lagarde will speak

 The weekly economic calendar begins with ECB President Lagarde Speaks. The call will be closely watched for new views on monetary policy ahead of the bank’s next meeting on December 14.

 Tuesday – Tokyo CPI, Australian interest rate decision

The market reacted strongly to the decision of the interest rate of the Reserve Bank of Australia. The bank expects to keep interest rates unchanged at 4.35 per cent at its latest policy meeting after last month’s rate cut and after last week’s data showed inflation slowed in October.

However, the market is wary of being hawkish as prices remain high and new governor Michele Bullock is increasingly seen as more of a hawk than her predecessor. 

China

There will be several releases of China inflation data coming in.

China will be releasing Services PMI data with a modest increase to 50.7 from 50.4 previously.

 The US releases ISM Services PMI and JOLTS Job Openings data on the strength of the US economy and the outlook for central bank interest rates.

The ISM Services PMI is expected to come in at 52.5, up from 51.80 previously. While JOLTS vacancies are projected at 9.33 million from earlier 9.55 million.

Wednesday – Bank of Canada decision

 Canada

 The Bank of Canada will hold a policy meeting on Wednesday. The bank expects to keep interest rates unchanged at 5.0 per cent until its third meeting. Recent data showed that the country’s economy shrank in the third quarter, indicating that aggressive interest rate hikes by the central bank are holding back growth.

German

 German factory orders data is out, showing whether the bloc’s biggest economy’s manufacturing sector is still in decline. However, the data is expected to remain unchanged at 0.2% from before.

 The BoE’s Financial Stability Report (FSR) will be published but is unlikely to have any impact on the British pound. the united states

 Later in the day, data on US ADP employment changes will be released, showing a modest increase of 120,000 from 113,000 previously.

Thursday – China trade data

 In the United States, weekly unemployment data is released. According to the forecast, 221,000 from 218,000 before.

China Trade

 Chinese trade data could set the tone for the market earlier in the day amid the China inflation data. The focus shifts to signs of recovery in the world’s second-largest economy. The amount is estimated at 380 billion less than last month’s 405 billion.

Friday – Non-Farm Pay of US

 Markets reacted strongly to November’s employment report, which will determine whether economic growth continues to level off.  Too strong a number would hurt bets that the Fed will start easing its tight monetary policy earlier than expected, which would dampen gains in stocks and bonds in the fourth quarter.

On the other hand, a weak indicator could raise fears that the economy will cool after the 525 basis point interest rate hike, dampening risk appetite.

 Economists expect the US economy to have added 185,000 jobs in November after adding 150,000 jobs in October.

 Saturday – China CPI  

China’s macroeconomic indicators, CPI y/y and PPI y/y will be released on Saturday. China Inflation indicators may have a neutral impact, as it is expected to remain almost unchanged from -0.2% previously. PPI y/y is forecast at -3.0% compared to -2.6% previously, which could negatively impact  the yuan

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