Highlights
The UK labour market report is expected to show the ILO unemployment rate for the three months to November was unchanged at 3.7 percent. Average earnings growth for the three months to November is also expected to hold steady, at 6.1 percent.
The ZEW monthly survey of financial experts in Germany is expected to show the index for current economic conditions recovered further in January to minus 58.4 from minus 61.4 in December. The economic sentiment (expectations) index is also seen improving further to minus 15.5 from 23.3.
The New York Fed's Empire State manufacturing index is forecast to remain in the negative column at minus 7.5 in January after December's disappointing minus 11.2.
In Canada, housing starts are expected to slow to 259,000 in December versus 264,159 in November.
Inflation has been easing gradually in Canada but is still well above the Bank of Canada's 2 percent target. Consumer prices are expected to fall 0.5 percent on the month in December after rising 0.1 percent in November, with the year-over-year rate seen slowing to 6.4 percent from 6.8 percent.
New York Federal Reserve Bank President John Williams will give welcome remarks before the hybrid An Economy That Works for All: Moving Towards Equitable Growth conference organized by the Federal Reserve Bank of New York at 3 p.m. EST (2000 GMT).
Japanese machinery orders, the key leading indicator of business investment in equipment, are forecast to have slipped 1.0 percent in November after posting their first rise in three months in October (up by an above-consensus 5.4 percent). Capex plans for fiscal 2022 are solid among many firms while global demand is slowing. Core orders are seen up 1.8 percent from a year earlier for a 20th straight rise after rising a below-forecast 0.4 percent in October and rising 2.9 percent in September. The Cabinet Office maintained its assessment last month after downgrading it in November, saying, The move toward a pickup in machinery orders has paused.
The Bank of Japan board is expected to further revise up its medium-term inflation forecasts in its quarterly Outlook Report due after the bank's two-day policy meeting, from its previews projections of 2.9 percent in core CPI for fiscal 2022 and 1.6 percent for fiscal 2023, but its revision to the 1.6 percent forecast for fiscal 2024 is seen limited. Given falling real wages and the persistent negative output gap, the bank is unlikely to revamp its long-held yield curve control framework, including the slightly negative interest rate for overnight borrowing costs, until the second five-year term of Governor Haruhiko Kuroda, an advocate for a reflationary policy mix, ends in early April.
At its last meeting on Dec. 19-20, the BoJ policy board decided unanimously to allow the yield on the 10-year Japanese government bonds to rise to 0.5% from 0.25% amid upward pressures arising from aggressive tightening by other major central banks, hoping to revive some of the paralyzed market functions under its yield curve control regime. At the same time, the board voted unanimously to maintain its basic monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and large asset purchases in order to support economic recovery from the pandemic-triggered slump and anchor inflation around its 2% price stability target.
The ZEW monthly survey of financial experts in Germany is expected to show the index for current economic conditions recovered further in January to minus 58.4 from minus 61.4 in December. The economic sentiment (expectations) index is also seen improving further to minus 15.5 from 23.3.
The New York Fed's Empire State manufacturing index is forecast to remain in the negative column at minus 7.5 in January after December's disappointing minus 11.2.
In Canada, housing starts are expected to slow to 259,000 in December versus 264,159 in November.
Inflation has been easing gradually in Canada but is still well above the Bank of Canada's 2 percent target. Consumer prices are expected to fall 0.5 percent on the month in December after rising 0.1 percent in November, with the year-over-year rate seen slowing to 6.4 percent from 6.8 percent.
New York Federal Reserve Bank President John Williams will give welcome remarks before the hybrid An Economy That Works for All: Moving Towards Equitable Growth conference organized by the Federal Reserve Bank of New York at 3 p.m. EST (2000 GMT).
Japanese machinery orders, the key leading indicator of business investment in equipment, are forecast to have slipped 1.0 percent in November after posting their first rise in three months in October (up by an above-consensus 5.4 percent). Capex plans for fiscal 2022 are solid among many firms while global demand is slowing. Core orders are seen up 1.8 percent from a year earlier for a 20th straight rise after rising a below-forecast 0.4 percent in October and rising 2.9 percent in September. The Cabinet Office maintained its assessment last month after downgrading it in November, saying, The move toward a pickup in machinery orders has paused.
The Bank of Japan board is expected to further revise up its medium-term inflation forecasts in its quarterly Outlook Report due after the bank's two-day policy meeting, from its previews projections of 2.9 percent in core CPI for fiscal 2022 and 1.6 percent for fiscal 2023, but its revision to the 1.6 percent forecast for fiscal 2024 is seen limited. Given falling real wages and the persistent negative output gap, the bank is unlikely to revamp its long-held yield curve control framework, including the slightly negative interest rate for overnight borrowing costs, until the second five-year term of Governor Haruhiko Kuroda, an advocate for a reflationary policy mix, ends in early April.
At its last meeting on Dec. 19-20, the BoJ policy board decided unanimously to allow the yield on the 10-year Japanese government bonds to rise to 0.5% from 0.25% amid upward pressures arising from aggressive tightening by other major central banks, hoping to revive some of the paralyzed market functions under its yield curve control regime. At the same time, the board voted unanimously to maintain its basic monetary easing stance, keeping its zero to slightly negative interest rate targets along the yield curve and large asset purchases in order to support economic recovery from the pandemic-triggered slump and anchor inflation around its 2% price stability target.
Definition
Market Focus details key factors in the coming day that will impact the economic outlook and the financial markets. These include central bank events, economic indicators, policymaker speeches as well as expected political and corporate developments.
Description
Keeping up-to-date with event schedules and the economic calendar is key to understanding the global financial system. Econoday's Market Focus allows investors and policymakers to carefully track what will be making news and moving the financial markets in the coming day.
