Highlights
North America switches to the daylight-saving time on Sunday, March 10. The eastern time zone is now four hours behind the GMT, instead of five.
For this week, the focus is on the US CPI data on Tuesday ahead of the Federal Open Market Committee meeting on March 19-20. The annual inflation rate is seen unchanged at 3.1 percent in February amid sticky housing and services costs while the monthly increase is likely to tick up to 0.4 percent on higher gasoline prices. Excluding food and energy, the core CPI annual rate is forecast to ease to 3.7 percent from 3.9 percent in January. Both measures would suggest it takes a little more time for inflation to cool down to the Fed's 2 percent target. The UK will release monthly GDP for January (plus 0.1 percent versus minus 0.1 percent in December) and industrial production (minus 0.1 percent versus plus 0.5 percent) on Wednesday before the March 21 meeting of the Bank of England, which is seen holding its policy rate at 5.25 percent.
While central bankers from North America and Europe are not in a hurry to lower interest rates and calling for patience, market participants expect the banks to cut rates in June (the Bank of Canada on June 5, the European Central Bank on June 6 and the Federal Reserve on June 11-12). On the other hand, there are heightened expectations that the Bank of Japan may act sooner on March 18-19, instead of April 25-26, to lift the negative 0.1 percent short-term interest rate target to zero as part of its gradual process of unwinding large-scale monetary stimulus. Recent official comments point to a higher possibility of achieving stable 2 percent inflation and a reduced risk of falling back into deflation. Some major firms have already accepted demands for higher wages and better working conditions at an early stage of annual talks with unions amid widespread labor shortages.
Producer inflation in Japan is expected to accelerate to 0.5 percent in February as the base-year effect of utility subsidies has waned, following a 0.2 percent increase seen in each of the previous two months. The prices for lumber, steel and chemicals remain below year-earlier levels amid slower global demand while the conflict in the Middle East is exerting upward pressures on energy and transportation costs. Producer prices are forecast to edge up 0.1 percent on the month after being flat in January and rising 0.3 percent in December. Import costs for non-ferrous metals eased as the Chinese economy is struggling to recover.
For this week, the focus is on the US CPI data on Tuesday ahead of the Federal Open Market Committee meeting on March 19-20. The annual inflation rate is seen unchanged at 3.1 percent in February amid sticky housing and services costs while the monthly increase is likely to tick up to 0.4 percent on higher gasoline prices. Excluding food and energy, the core CPI annual rate is forecast to ease to 3.7 percent from 3.9 percent in January. Both measures would suggest it takes a little more time for inflation to cool down to the Fed's 2 percent target. The UK will release monthly GDP for January (plus 0.1 percent versus minus 0.1 percent in December) and industrial production (minus 0.1 percent versus plus 0.5 percent) on Wednesday before the March 21 meeting of the Bank of England, which is seen holding its policy rate at 5.25 percent.
While central bankers from North America and Europe are not in a hurry to lower interest rates and calling for patience, market participants expect the banks to cut rates in June (the Bank of Canada on June 5, the European Central Bank on June 6 and the Federal Reserve on June 11-12). On the other hand, there are heightened expectations that the Bank of Japan may act sooner on March 18-19, instead of April 25-26, to lift the negative 0.1 percent short-term interest rate target to zero as part of its gradual process of unwinding large-scale monetary stimulus. Recent official comments point to a higher possibility of achieving stable 2 percent inflation and a reduced risk of falling back into deflation. Some major firms have already accepted demands for higher wages and better working conditions at an early stage of annual talks with unions amid widespread labor shortages.
Producer inflation in Japan is expected to accelerate to 0.5 percent in February as the base-year effect of utility subsidies has waned, following a 0.2 percent increase seen in each of the previous two months. The prices for lumber, steel and chemicals remain below year-earlier levels amid slower global demand while the conflict in the Middle East is exerting upward pressures on energy and transportation costs. Producer prices are forecast to edge up 0.1 percent on the month after being flat in January and rising 0.3 percent in December. Import costs for non-ferrous metals eased as the Chinese economy is struggling to recover.
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.
