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Financial markets anticipate busy week

Financial markets anticipate busy week with dozens of economic data and central banks meetings.

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Global markets start the last week before Christmas holidays with increasing bearish mood and registered significant losses during the last month. Wall Street indexes ended the last week with sharp declines amid fears of slowing global economic growth and weak economic data from China and Europe.

The situation in Asia and Europe is not much different with major benchmarks ending on red.

However, the week before Christmas holidays will be very interesting for the global financial markets, filled not only with a series of important macro data but also with the latest monetary policy decisions from the Fed, Bank of Japan and Bank of England.

Upcomming economic data

On Monday, December 17, will be released the Eurozone consumer price index data for November. Analysts’ consensus forecasts are to keep inflation at 2% YoY but to decline by 0.2% against October. Also, the markets will wait for the information on the trade balance for October. The monthly report of the German Central Bank will be published later this day.

On Tuesday, December 18, the Reserve Bank of Australia will publish the report of its last meeting. European markets will monitor the Ifo Business Climate Index for Germany. In the United States, will be released the building data for November.

On Wednesday, December 19, will be released the Japanese trade balance data for November. The UK Consumer Price Index data for November will also be on the spotlight of the investors. The expectations are for a slight acceleration of 0.1% to 0.2% on a monthly basis, but also for an annual slowdown from 2.4% to 2.3%.

In the focus of the markets will be the Federal Reserve’s latest decision for the year, as well as the latest economic forecasts of the US central bank. The attitudes of the markets are to raise the basic interest rate in the country from 2.25% to 2.50%.

Speculation that the Fed will slow down the pace of policy tightening has increased in recent months. That is why Jerome Powell’s press conference will be followed closely.

Meanwhile, the United States will also report on sales of existing homes and crude oil reserves.

On Thursday, December 20th, the day will start with a series of macro data for New Zealand – GDP for the third quarter, the trade balance for November and others. In Australia, markets will watch the latest labor market data in the country.

The Japanese central bank is expected to keep the key interest rate at -0.10%.

The Bank of England will meet also to decide on its monetary policy. There will hardly be any change before the Brexit conditions become clear. Meanwhile, will be released the UK sales data for November.

In the United States, will be published the latest data on the number of applications for unemployment benefits.

On Friday, December 21, the markets will expect Germany’s Consumer Confidence Index for January. The consensus estimate is to keep the current levels of 10.4 points.

In the UK, the GDP data will be released in the third quarter. the expectations are to maintain the current growth rate of 0.6% QoQ and 1.5% YoY.

Later, the US GDP is also in focus for the third quarter of 2018, with forecasts for maintaining growth at 3.5%.

A series of important macro data will also be published for Canada, including retail sales and GDP for October.