Highlights
Friday's calendar gets under way with Japanese CPI figures. Consumer inflation in Japan is expected to accelerate in two of the three key measures in December, with the core reading (excluding fresh food) seen up 2.9 percent on year after rising to 2.7 percent in November from October's 2.3 percent. The year-on-year increase in the total CPI is forecast at 3.4 percent, also up from 2.9 percent the previous month. The underlying inflation measured by the core-core CPI (excluding fresh food and energy) is seen at 2.4 percent after rising to 2.4 percent in November from 2.3 percent in October.
Next up is the BOJ policy announcement where markets are expecting the board to decide in a majority vote to raise the policy interest rate by another 25 basis points to 0.5 percent after leaving it steady at 0.25 percent in the last three meetings.
The Singapore MAS is also scheduled to make its policy announcement Friday and markets are widely expecting a rate cut in response to slowing inflation and to preempt economic weakness. Additionally from Singapore, the industrial production report is scheduled. Forecasters expect a decline of 1.2 percent on the month and an increase of 5.0 percent on the year for December.
In Europe, a batch of PMI flash reports are due for January. For the Eurozone, expectations for the composite call for no change at 49.6 from December. Manufacturing is expected languish at 45.3 versus 45.2 last month and services at 51.5 versus 51.6.
In the US the PMI flash for January is due with forecasters expecting manufacturing at 48.9 versus 49.4 in December, and services at 56.7 versus 56.8.
US existing home sales are expected pretty flat at a 4.16 million rate for December versus 4.15 million in November. Separately, the final consumer sentiment report for January is due, with expectations calling for no change from the 73.2 preliminary figure.
Next up is the BOJ policy announcement where markets are expecting the board to decide in a majority vote to raise the policy interest rate by another 25 basis points to 0.5 percent after leaving it steady at 0.25 percent in the last three meetings.
The Singapore MAS is also scheduled to make its policy announcement Friday and markets are widely expecting a rate cut in response to slowing inflation and to preempt economic weakness. Additionally from Singapore, the industrial production report is scheduled. Forecasters expect a decline of 1.2 percent on the month and an increase of 5.0 percent on the year for December.
In Europe, a batch of PMI flash reports are due for January. For the Eurozone, expectations for the composite call for no change at 49.6 from December. Manufacturing is expected languish at 45.3 versus 45.2 last month and services at 51.5 versus 51.6.
In the US the PMI flash for January is due with forecasters expecting manufacturing at 48.9 versus 49.4 in December, and services at 56.7 versus 56.8.
US existing home sales are expected pretty flat at a 4.16 million rate for December versus 4.15 million in November. Separately, the final consumer sentiment report for January is due, with expectations calling for no change from the 73.2 preliminary figure.
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.
