Eurozone, UK rate decisions
In the US, the economic data for the week ahead looks relatively quiet as the US markets come back to full operative mode after Thanksgiving holiday. The week will kick-start with some data on the manufacturing sector as the Institute of Supply...
In the US, the economic data for the week ahead looks relatively quiet as the US markets come back to full operative mode after Thanksgiving holiday. The week will kick-start with some data on the manufacturing sector as the Institute of Supply Management issues its figures for the month of November.
Other intra-week releases will feature domestic vehicle sales, which are expected to highlight further downward pressures. Initial jobless claims will wrap up the week as jobless claims are expected to rise further.
In Europe, the economic schedule looks much more crowded than its US counterpart, where interest rate decisions from both the European Central Bank (ECB) and the Bank of England (BoE) will steal most of the limelight.
As economic concerns mount the ECB is expected to reduce rates by 50 basis points in Thursday's meeting. Producer Price Inflation figures are expected to keep on decreasing, putting more emphasis on deflationary fears. Midway through the week Eurozone retail sales should also confirm consumers' unwillingness to spend as the economy deteriorates.
Meanwhile, the BoE is expected to take a more aggressive stance at its Thursday meeting. According to a Bloomberg survey, the Monetary Policy committee will lower rates by another one per cent, to push the BoE rate to two per cent.
Prior to the rate announcement, markets will get some insight on the state of the manufacturing and construction industries through the Purchasing Manager Index. Both indicators are expected to dip further below the 50 level mark, which distinguishes growth from contraction.
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