Highlights
After last week's mixed US data for December that showed solid employment and wages growth and unexpectedly sluggish services sector activity, market participants are looking for more clues to the strength of economic growth and price pressures, and the prospects for rate cuts by the Federal Reserve this year. The focus is on the December CPI report on Thursday, which is expected to show a modest pickup in inflation despite lower gasoline and commodities prices. Excluding volatile factors of food and energy, the core CPI is seen easing slightly.
Among Monday's data, German manufacturers' orders are expected to post a 1.3 percent rebound on the month in November after slumping 3.7 percent in October.
The EC economic sentiment index is forecast at 94.1 for December, up from 93.8 in November, which was up slightly from 93.5 in October to end six straight declines.
Eurozone retail sales volumes in November are expected to rise 0.2 percent on the month following a marginal and lower-than-expected 0.1 percent increase in October that left volumes down 1.2 percent on the year.
US consumer credit is expected to increase $9.5 billion in November versus a $5.2 billion increase in October.
Atlanta Federal Reserve Bank President Raphael Bostic will participate in a moderated conversation on the economic outlook before the Rotary Club of Atlanta at 12:30 p.m. EST (1730 GMT).
Consumer inflation in Tokyo, the leading indicator of the national average, is forecast to ease further in December in all three key measures as markups in food and beverages had already peaked and subsidized energy prices are falling. By contrast, services costs have been rising on widespread labor shortages, a welcome signal for Bank of Japan policymakers who are seeking stable 2 percent inflation accompanied by sustainable wage hikes.
The core CPI (excluding fresh food) is expected to post an 18-month low of a 2.1 percent rise on year, slowing from 2.3 percent in November. The year-over-year rise in the total CPI is also seen falling to an 18-month low of 2.4 percent from 2.6 percent. The core-core CPI (excluding fresh food and energy) annual rate is expected to ease to a nine-month low of 3.5 percent from 3.6 percent.
Japan's real household spending is forecast to post its ninth straight drop on the year in November, down 2.3 percent, after falling 2.5 percent in October and 2.8 percent in September as consumers remain frugal amid elevated costs for food and other daily necessities. On the month, expenditures are forecast to rebound 0.3 percent after edging down 0.1 percent in October.
Protracted warm weather that had dampened demand for autumn goods in the previous two months gave way to lower temperatures in November, prompting purchases of winter clothing and heaters.
In Australia, retail sales are forecast to have rebounded 1.2 percent on the month in November at the start of the holiday shopping season after dipping 0.2 percent in October and rising 0.9 percent in September.
Among Monday's data, German manufacturers' orders are expected to post a 1.3 percent rebound on the month in November after slumping 3.7 percent in October.
The EC economic sentiment index is forecast at 94.1 for December, up from 93.8 in November, which was up slightly from 93.5 in October to end six straight declines.
Eurozone retail sales volumes in November are expected to rise 0.2 percent on the month following a marginal and lower-than-expected 0.1 percent increase in October that left volumes down 1.2 percent on the year.
US consumer credit is expected to increase $9.5 billion in November versus a $5.2 billion increase in October.
Atlanta Federal Reserve Bank President Raphael Bostic will participate in a moderated conversation on the economic outlook before the Rotary Club of Atlanta at 12:30 p.m. EST (1730 GMT).
Consumer inflation in Tokyo, the leading indicator of the national average, is forecast to ease further in December in all three key measures as markups in food and beverages had already peaked and subsidized energy prices are falling. By contrast, services costs have been rising on widespread labor shortages, a welcome signal for Bank of Japan policymakers who are seeking stable 2 percent inflation accompanied by sustainable wage hikes.
The core CPI (excluding fresh food) is expected to post an 18-month low of a 2.1 percent rise on year, slowing from 2.3 percent in November. The year-over-year rise in the total CPI is also seen falling to an 18-month low of 2.4 percent from 2.6 percent. The core-core CPI (excluding fresh food and energy) annual rate is expected to ease to a nine-month low of 3.5 percent from 3.6 percent.
Japan's real household spending is forecast to post its ninth straight drop on the year in November, down 2.3 percent, after falling 2.5 percent in October and 2.8 percent in September as consumers remain frugal amid elevated costs for food and other daily necessities. On the month, expenditures are forecast to rebound 0.3 percent after edging down 0.1 percent in October.
Protracted warm weather that had dampened demand for autumn goods in the previous two months gave way to lower temperatures in November, prompting purchases of winter clothing and heaters.
In Australia, retail sales are forecast to have rebounded 1.2 percent on the month in November at the start of the holiday shopping season after dipping 0.2 percent in October and rising 0.9 percent in September.
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.
