Close Menu
  • Home
  • Europe
  • United Kingdom
  • World
  • Politics
  • Business
  • Culture
  • Health
  • Sports
  • Tech
  • Travel
Trending

Wimbledon fans fume over ‘pure greed’ as they count cost of pint of Stella and sushi

July 2, 2025

USAID closes its doors after six decades of global humanitarian operations amid Trump crackdown

July 2, 2025

Jo Malone London launches ‘best ever’ new £59 perfume that smells just like ice cream

July 2, 2025
Facebook X (Twitter) Instagram
Facebook X (Twitter) Instagram YouTube
Se Connecter
July 2, 2025
Euro News Source
Live Markets Newsletter
  • Home
  • Europe
  • United Kingdom
  • World
  • Politics
  • Business
  • Culture
  • Health
  • Sports
  • Tech
  • Travel
Euro News Source
Home»Business
Business

Upcoming Week in Markets: Eurozone Inflation Data in the Spotlight

News RoomBy News RoomDecember 1, 2024
Facebook Twitter WhatsApp Copy Link Pinterest LinkedIn Tumblr Email Telegram

This week, investors are closely monitoring developments in US politics and global geopolitical tensions, which continue to influence market dynamics. Key economic indicators, including inflation data from the European Union, the second estimate of the US Gross Domestic Product (GDP), and the Reserve Bank of New Zealand’s (RBNZ) interest rate decision, are prominent on the regional agenda this week. Following a recent uptick in stock prices, driven largely by continued bullish sentiment on Wall Street influenced by the “Trump Trade,” the market atmosphere remains volatile, particularly amidst significant geopolitical concerns. The increase in tensions has propelled commodities such as gold and crude oil to rise, while the US dollar and Japanese yen have appreciated as safe-haven assets. In contrast, European equities and the euro have faced downward pressure, compounded by concerns about the impact of ongoing tensions between Ukraine and Russia.

In the eurozone, inflation appears to have experienced a slight resurgence, with the preliminary Consumer Price Index (CPI) showing an increase to 2% in October, compared to 1.7% in September, largely attributed to variances in energy prices. A closer examination of inflation across major economies shows that Germany’s CPI has risen to a three-month high, while France and Spain also recorded minor increases in their respective inflation rates. The consensus among economists suggests that inflation could persist at elevated levels, with expectations placing the harmonized CPI for November around 2.3% and core inflation at about 2.8%. This rising inflation trend is likely to prompt the European Central Bank (ECB) to approach rate adjustments with caution, adopting a more measured stance on any rate cuts in the future.

In addition to inflation data, Germany’s IFO Business Climate index will be under scrutiny as it serves as a vital gauge for economic sentiment in the region. After declining for five consecutive months, the index rebounded slightly to 86.5 in October, reflecting improved conditions in both the manufacturing and services sectors. This uptick in business confidence coincided with expectations of reduced interest rates and easing inflationary pressures. However, geopolitical tensions, particularly the ongoing conflict in Ukraine, continue to cast a shadow over this fragile recovery, leading to predictions that the index may dip slightly to 86.1 for November. The interplay of these economic indicators could heavily influence investor sentiment and ECB policy decisions in the near term.

Across the Atlantic, attention in the US will focus on the preliminary estimate of the GDP for the third quarter, which is expected to align with the advance reading of an annualized growth rate of 2.8%. This reading, a minor decrease from the 3% growth seen in the previous quarter, still underscores a stronger economic performance relative to many other developed nations and lends credence to the notion of a potential soft landing for the US economy. The upcoming Personal Consumption Expenditures (PCE) data will also be crucial, as it serves as a bellwether for inflationary trends and consumer behavior. Following a year-on-year PCE increase of 2.1% reported in September, the core PCE, which excludes food and energy prices, remained elevated at 2.7%, well above the Federal Reserve’s target of 2%. Commentary suggests expectations for a potential monthly core PCE increase of 0.3% in October, signaling persistent inflation pressures, which might influence the Fed’s decision-making regarding interest rate adjustments moving forward.

In the Asia-Pacific region, the RBNZ’s decision on interest rates is highly anticipated, particularly in light of a sizable 0.5% cut instituted in October. Speculation suggests the RBNZ could implement another rate decrease of at least that magnitude, with analysts from the ANZ banking group forecasting that New Zealand may slip into a technical recession due to tightened monetary policy and weakening global demand. This economic outlook could compel the central bank to persist with aggressive rate cuts to stimulate economic activity. Interestingly, recent swaps market signals indicated a 22% chance of a larger 0.75% rate cut, underscoring the urgency of addressing economic weaknesses.

Australia, meanwhile, is preparing to release its October Consumer Price Index (CPI) data, which is anticipated to reflect a year-on-year increase to 2.5%, up from 2.1% in the previous month. This potential rise in inflation could reinforce the Reserve Bank of Australia’s (RBA) cautious stance, likely maintaining its policy rate at 4.35% through to April of the following year. Overall, the convergence of regional economic developments and geopolitical events creates a complex landscape for investors, necessitating careful attention to policy changes, economic data releases, and market reactions in this shifting environment. This week’s economic indicators will substantially affect monetary policy trajectories and market sentiments in the short to medium term across these interconnected regions.

Share. Facebook Twitter Pinterest LinkedIn Telegram WhatsApp Email

Keep Reading

Poland trials a four-day working week: A step towards the future?

Business July 1, 2025

US stocks rise as investors prepare for Trump’s tariff deadline

Business July 1, 2025

Nike expects US tariffs to cost it $1bn and warns of falling sales

Business June 27, 2025

C-suite overconfidence in AI could prove bad for business, says survey

Business June 27, 2025

RTL to buy Sky Deutschland for €150mn in TV consolidation effort

Business June 27, 2025

Tariffs: France and Germany pursue different tacks towards US deal

Business June 27, 2025

How much more have billionaires amassed in the last 10 years?

Business June 26, 2025

Why is the Asian Infrastructure Investment Bank regionally significant?

Business June 26, 2025

Shell says it’s not in talks to acquire BP as takeover rumours swirl

Business June 26, 2025

Editors Picks

USAID closes its doors after six decades of global humanitarian operations amid Trump crackdown

July 2, 2025

Jo Malone London launches ‘best ever’ new £59 perfume that smells just like ice cream

July 2, 2025

Trump says Israel has agreed on terms for 60-day ceasefire in Gaza

July 2, 2025

Clacton murder update as police picture son, 24, who admits killing own mum

July 2, 2025

Latest News

Brit found dead in Arizona named 12 years later after scientific breakthrough

July 2, 2025

Harvey Willgoose texted dad about ‘knives’ at school days before fatal stabbing

July 2, 2025

Men accused of shooting prison officer dead in ‘revenge’ pictured at Glastonbury

July 1, 2025

Subscribe to News

Get the latest Europe and World news and updates directly to your inbox.

Facebook X (Twitter) Pinterest Instagram
2025 © Euro News Source. All Rights Reserved.
  • Privacy Policy
  • Terms
  • Contact

Type above and press Enter to search. Press Esc to cancel.

Sign In or Register

Welcome Back!

Login to your account below.

Lost password?