14/12/2017
See the Bank of England and ECB talk about economic future, by Mário Blaščák
What you need to know before markets open
The US Federal Reserve hiked the rates by 25 basis points in line with expectations but remained dovish with two FOMC members dissenting the decision and three rate hikes projected for 2018.
The US Dollar fell across the board on Fed raising rates as markets saw the move being dovish with the short-term economic projections lifted by the US tax reform but giving the economy and the inflation long-lasting boost.
The Bank of England and the ECB policy decision are due today, with both central banks seen staying on hold with the monetary policy arsenal while markets are likely to monitor closely what they have to say.
Thursday’s market moving events
Australian employment rose 61.6K and the unemployment rate remained at 5.4% in November.
China’s retails sales increased 10.2% y/y in November.
China’s industrial production rose 6.1% y/y in November.
China’s central bank, the People’s Bank of China, raised the interest rates for the first time since mid-March in a surprising move after Fed. Both 7-day and 28-day repo rates were lifted by 5 basis points, while PBoC left 14-day repo rate unchanged.
French CPI is expected to rise 0.1% m/m and 1.3% y/y in November.
Spanish CPI is forecast to increase 0.4% m/m and 1.6% y/y in November.
Flash manufacturing PMI for France is set to decelerate to 57.2 with composite PMI decelerating to 59.4 in December from 60.2 in the previous month.
Flash manufacturing PMI for Germany is set to decelerate to 62.0 while services are seen accelerating to 54.6 in December. The composite PMI is seen decelerating to 57.2 in December from 57.3 in the previous month.
The Eurozone Flash manufacturing PMI is expected to 59.8 while services are seen edging down to 56.0 in December. The composite PMI is expected to decelerate to 57.2 from 57.5 in the previous month.
The UK retail sales are expected to rise 0.4% m/m in October while rising 0.3% y/y.
The Bank of England is expected to hold the Bank rate and monetary policy tools unchanged in December.
The ECB is expected to keep interest rates unchanged while in has pre-announced tapering of its asset purchasing program since January back in November.
The US retail sales are expected to rise 0.6% m/m with the core retail sales expected to increase 0.3% m/m in November.
The US initial jobless claims are seen rising by 239K in the week ending December 8.
Canada’s new house price index is expected to rise 0.2% m/m in October
The US manufacturing PMI is expected to accelerate to 54.0 in December and services PMI is seen rising to 55.0 in the same month.
The Bank of Canada Governor Stephen Poloz is due to deliver a speech titled "Three Things Keeping Me Awake at Night" at the Canadian Club of Toronto at 17:25 GMT.
