Indicators for the week

This week the markets will focus on the upcoming interest rate decisions to be announced by both the European Central Bank (ECB) and the Bank of England (BOE).

In the Euroland, the announcement by the ECB is expected on Thursday. Market participants are expecting the ECB to keep rates on hold at four per cent and highlight once again the upside risks to inflation.

Among other releases this week, there will be the Industrial Production (IP) figures for Germany and Spain, which will give us indications on the manufacturing sector of the respective economies. The publication of the Purchasing Managers services indices (PMI) for the Euroland and the major economies, together with the Euroland's Producers Price Index (PPI) numbers are also expected. Retail sales figures for December will also be released this week.

Similarly, in the UK, the BOE is also expected to issue its interest rate decision on Thursday. Unlike the ECB, the market is expecting the BOE to cut rates by 25 basis points. The market will also look towards data to be issued this week regarding the performance of the services sector in January. IP data for December is also due this week.

In the US, December factory orders figures and the ISM non-manufacturing index for the month of January are due. Jobless claims and continuing claims numbers are also on the agenda for this week. From the housing market, pending home sales figures for December should complete the economic schedule in the US.

This article has been prepared by Bank of Valletta plc, which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the bank to acquire or sell securities, nor does it constitute any form of advice by the bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.