Highlights
In Europe, the purchasing managers' indexes are expected to stay under the neutral line of 50, indicating the regional economic growth remains sluggish.
Switzerland's SVME PMI for January is expected to rise from December's 43.0 to a still very subdued 44.5.
No revisions are expected to the French manufacturing sector PMI at 43.2 in January, up from December's final 42.1; the German manufacturing PMI at 45.4, up from December's final 43.3; the Eurozone manufacturing PMI at 46.6, up from December's final 44.4; and the UK manufacturing PMI at 47.3, up from December's final 46.2.
As seen in the French and German CPI data released Wednesday, the Eurozone's annual inflation rate appears to moderating.
The flash harmonised index of consumer prices (HICP) for the region is forecast to have eased slightly to 2.8 percent in January after firming to 2.9 percent in December from 2.4 percent in November. The narrow core measure is also seen slowing further to 3.3 percent from 3.4 percent rise in December and3.6 percent in November.
The Eurozone unemployment rate is expected to edge up to 6.5 percent in December from November's 6.4 percent. Unemployment in the region has been running at record lows.
The Bank of England is expected to hold its policy interest rate steady at 5.25 percent for a fourth straight month. The UK inflation rate has eased to 4 percent from above 10 percent in early 2023 but it is still above its target of 2 percent. The BoE policy decision and minutes are scheduled for release at 7 a.m. EST (1200 GMT).
Among US data, new jobless claims for the January 28 week are expected to come in unchanged at 214,000.
Nonfarm productivity is expected to slow to a 2.3 percent annualized rate in the fourth quarter versus 5.2 percent growth in the third quarter. Unit labor costs, which fell 1.2 percent in the third quarter, are expected to rise to a 2.1 percent rate in the fourth quarter.
The final manufacturing PMI for January is expected to come in at 50.3, unchanged from the mid-month flash and more than 2 points higher than December.
The manufacturing index compiled by the Institute for Supply Management is expected to be unchanged at 47.4 in January, staying in contraction for a 15th straight month. In December, the index rose from November's 46.7 as production was stable despite sluggish demand, with a senor ISM official predicting a return to growth (above 50) in March.
Construction spending has shown only limited effects from high financing rates. After rising 0.4 percent on the month in November, spending in December is expected to rise 0.5 percent.
In South Korea, consumer inflation is forecast to ease further to 3.1 percent in January after slowing to 3.2 percent in December from 3.3 percent in November. This month, the Bank of Korea left its policy interest rate unchanged for the eighth straight meeting, at 3.5 percent, as expected. The bank last raised the Base Rate by 25 basis points to the current restrictive level in January 2023.
Switzerland's SVME PMI for January is expected to rise from December's 43.0 to a still very subdued 44.5.
No revisions are expected to the French manufacturing sector PMI at 43.2 in January, up from December's final 42.1; the German manufacturing PMI at 45.4, up from December's final 43.3; the Eurozone manufacturing PMI at 46.6, up from December's final 44.4; and the UK manufacturing PMI at 47.3, up from December's final 46.2.
As seen in the French and German CPI data released Wednesday, the Eurozone's annual inflation rate appears to moderating.
The flash harmonised index of consumer prices (HICP) for the region is forecast to have eased slightly to 2.8 percent in January after firming to 2.9 percent in December from 2.4 percent in November. The narrow core measure is also seen slowing further to 3.3 percent from 3.4 percent rise in December and3.6 percent in November.
The Eurozone unemployment rate is expected to edge up to 6.5 percent in December from November's 6.4 percent. Unemployment in the region has been running at record lows.
The Bank of England is expected to hold its policy interest rate steady at 5.25 percent for a fourth straight month. The UK inflation rate has eased to 4 percent from above 10 percent in early 2023 but it is still above its target of 2 percent. The BoE policy decision and minutes are scheduled for release at 7 a.m. EST (1200 GMT).
Among US data, new jobless claims for the January 28 week are expected to come in unchanged at 214,000.
Nonfarm productivity is expected to slow to a 2.3 percent annualized rate in the fourth quarter versus 5.2 percent growth in the third quarter. Unit labor costs, which fell 1.2 percent in the third quarter, are expected to rise to a 2.1 percent rate in the fourth quarter.
The final manufacturing PMI for January is expected to come in at 50.3, unchanged from the mid-month flash and more than 2 points higher than December.
The manufacturing index compiled by the Institute for Supply Management is expected to be unchanged at 47.4 in January, staying in contraction for a 15th straight month. In December, the index rose from November's 46.7 as production was stable despite sluggish demand, with a senor ISM official predicting a return to growth (above 50) in March.
Construction spending has shown only limited effects from high financing rates. After rising 0.4 percent on the month in November, spending in December is expected to rise 0.5 percent.
In South Korea, consumer inflation is forecast to ease further to 3.1 percent in January after slowing to 3.2 percent in December from 3.3 percent in November. This month, the Bank of Korea left its policy interest rate unchanged for the eighth straight meeting, at 3.5 percent, as expected. The bank last raised the Base Rate by 25 basis points to the current restrictive level in January 2023.
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.
