European stock markets are anticipated to open in a mixed fashion on Monday. Investors are gearing up for a week filled with central bank meetings and significant economic data releases.
The Federal Open Market Committee is scheduled to convene on Tuesday and Wednesday. A 25 basis-point rate cut has already been factored in by the markets. Analysts will be closely monitoring the updated policy statement and Fed Chair Jerome Powell’s press conference for indicators on the trajectory of interest rates during the Trump administration.
The Bank of Japan is set to announce its decision on Thursday. Currently, the market sees only a 25 percent probability of a rate hike, following board member Nakamura's comments suggesting the decision should rely on economic data. Meanwhile, the Bank of England is expected to maintain its current policy rate at its Thursday meeting. The People’s Bank of China will reveal its loan prime rates decision on Friday.
In the U.S., this week’s economic calendar includes preliminary purchasing managers’ index data, reports on retail sales, industrial production, housing starts, building permits, and a second revision to the third-quarter GDP. The report on personal income and spending, scheduled for Friday, is significant as it includes the Fed’s preferred measures of consumer price inflation.
In Europe, preliminary purchasing managers’ indices for France, Germany, and the Eurozone are due later today and might shed light on the bloc’s subdued economic outlook. Germany's Ifo and ZEW indices, the GfK consumer climate survey, and the Eurozone’s final inflation figures for November will be closely watched throughout the week.
Asian markets experienced a general decline following mixed economic reports from China. China's industrial production met expectations in November, but retail sales growth slowed sharply, and fixed asset investment growth underperformed, raising concerns about decreasing demand. Over the weekend, Chinese regulators committed to intensifying their efforts to stabilize the housing and equity markets while implementing more effective fiscal policies.
In South Korea, President Yoon Suk Yeol was impeached by lawmakers on Saturday over a botched attempt at martial law.
The U.S. dollar approached a three-week high, and gold prices edged upward ahead of the anticipated hawkish rate cut by the Federal Reserve this week. Oil futures decreased from recent highs due to concerns about demand from China.
U.S. stock markets exhibited volatility before ending slightly mixed on Friday. This was due to rising Treasury yields counteracting Broadcom’s optimistic AI-driven sales forecast. The Dow Jones Industrial Average fell by 0.2 percent, marking its seventh consecutive day of losses—the longest streak since 2020. The Nasdaq Composite, with its tech focus, edged up by 0.1 percent, while the S&P 500 closed slightly down.
European stocks declined on Friday amid worries about slowing economic growth and the potential for a trade war. The pan-European STOXX 600 fell by 0.5 percent, ending a three-week winning streak amid ongoing political and economic uncertainties in France. The German DAX and the U.K.’s FTSE 100 each slipped by 0.1 percent, while France's CAC 40 decreased by 0.2 percent.
The material has been provided by InstaForex Company -
www.instaforex.com
