U.S., Europe and Asia, What is Important This Week

Asia

The week starts with data from China. GDP growth of 4% was above the expected 3.6%. In addition, industrial production increased by 4.3% year-on-year in December.

The Bank of Japan will make a statement on Tuesday on the outcome of its monetary policy meeting. It is expected that the world’s most indebted country will maintain the loose monetary policy. In addition, Japan will probably adjust the inflation forecast. Although the official inflation is below the issued 2% mark, due to supply chain bottlenecks, manufacturers expect higher prices.

Europe

Important data from Europe is expected on Tuesday when Germany will give the ZEW data on economic sentiment in the country.

On Wednesday, there are inflation data from the U.K. It is expected that the official CPI data for the month of December show a further increase. The BoE was one of the first banks to raise interest rates slightly. In the previous month of November, the increase in the CPI was 5.1% YoY.

On Thursday, the inflation data for the EU area will be published. It is expected that these show no further increase to the month of November. In November, the CPI rose u 5% YoY. In addition, the ECB will publish the minutes of the last monetary policy meeting. No drastic change in the monetary policy of the ECB is expected. The President of the ECB will then make a statement on Friday.

U.S. Data

The first important data will be released on Wednesday when the building permits for December are published. A slight decrease is expected compared to the previous month of November when building permits were 1.717 million.

On Thursday, initial jobless claims are expected to show a decline. The latest data showed an unexpected increase of 230k.
The Philadelphia Fed Manufacturing Index is expected to show an increase in business conditions over the previous month. The previous month’s data was 15.4, far below the previous month’s 39.
In addition, there is data on existing home sales. In the month of November, these were 6.46 million.
Finally, the EIA will then release data on the crude oil inventory of the previous week.

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