This week, attention will centre on inflation data from major economies, including the US, EU, and UK. Additionally, China’s forthcoming release of its Gross Domestic Product (GDP) growth figures for the final quarter will be a critical gauge for its economic trajectory.
ADVERTISEMENTThe European stock markets outperformed global peers last week, buoyed by expectations of a more accommodative monetary policy from the European Central Bank compared with the Federal Reserve. However, Friday’s robust US job data unsettled investors, causing the US and European government bond yields to surge, leading to a broad-based selloff in equities.
This week, attention will centre on inflation data from major economies, including the US, EU, and UK.
Additionally, China’s forthcoming release of its Gross Domestic Product (GDP) growth figures for the final quarter will be a critical gauge for its economic trajectory.
Europe
Eurostat is set to release final inflation data for December. Preliminary estimates indicate that the eurozone’s annual headline CPI accelerated for the third consecutive month to 2.4% year-on-year in December, compared with 2.2% in November and 2% in October.
However, this uptick was largely due to base effects, as falling energy prices were no longer impacting the annual rate. Core inflation, excluding volatile items such as food and energy, remained steady at 2.7%, signalling that inflation may be cooling.
The figures reinforce expectations for the ECB to…
