The most important economic events expected this week 11 to 15 Jan 2021

Monday, January 11, 2021 - 22:49
Point Trader Group
The most important economic events expected this week 11 to 15 Jan 2021

2020 is finally over, but the economic impact of Covid-19 is far from over. With many major economies in lockdown, the road to recovery promises to be long and bumpy. The US dollar is showing signs of stability, but with more easing and potential stimulus under the Democrats, the greenback has more room to fall in the coming weeks and months.

Euro-zone inflation is still continuing, with the CPI coming in at -0.3%, marking a fifth consecutive decline.

UK PMIs were a mixed bag in December. Manufacturing remains robust, with PMI accelerating to 57.5, up from 55.6 previously. This was the highest level since November 2017. The Services PMI slipped into contractionary territory and came in at 49.4, below the neutral 50 level. Construction also remains in expansionary territory and PMI came in at 54.6.

 

The Canadian economy showed a loss of 62.5 thousand jobs, the first decline since April. The unemployment rate rose to 8.6% from 8.7%.

In the US, reports of ISM PMIs indicated accelerated expansion in December. Manufacturing PMI improved to 60.7, up from 57.5 previously. This exceeded expectations and was the highest reading since August 2018. Services PMI rose to 57.2, up from 55.9 previously. That surpassed the estimate by 54.5 points.

The non-farm payroll was a disaster, with heavy losses reaching 140,000. The consensus estimate called for a gain of 60,000. There was better news from wage growth, which jumped 0.8% from 0.3% in the previous month. This was the strongest gain since April.

 

Euro-zone

Sentix Investor Confidence: Monday, investor confidence has been sunk in negative territory over the past 10 months, indicating continued pessimism regarding economic conditions in the Euro-Zone. However, analysts expect gains in January, with a 2.0 point estimate.

Industrial Production: This manufacturing index jumped to 2.1% in October but is expected to slow to just 0.3% in November.

European Central Bank monetary policy meeting accounts: Thursday. The accounts provide details of the European Central Bank's recent policy meeting. Investors will be looking for any hints regarding future monetary policy and potential easing measures in the new year.

French Consumer Price Index: Friday 7:45. Inflation in the second largest economy in the Eurozone remains subdued. The forecast for December is 0.2%, after a similar reading last month.

 

United State

US Inflation Report: Wednesday. The CPI was weak, but headline inflation is expected to rise to 0.4% in December. The core reading is expected to remain at 0.2%.

European Central Bank monetary policy meeting accounts: Thursday. The accounts provide details of the European Central Bank's recent policy meeting. Investors will be looking for any hints regarding future monetary policy and potential easing measures in the new year.

 

Britain

BRC Retail Sales Monitor: Tuesday. This indicator looks at retail sales at BRC stores. In November, the index rose to 7.7%, its highest level in five months. The estimate for December stands at 5.9%.

RICS Balance: Thursday. The index has shown a solid improvement in recent months, indicating the strength of the housing market. The next estimate is that 61% of reported surveyors will report an increase in home prices.

GDP: Friday, 7:00. The monthly GDP report was in decline and came in at just 0.4% in October. Analysts are preparing for a sharp contraction of 4.6% in November.

Industrial Production: Friday 7:00. The manufacturing sector remains strong and industrial production rose to 1.7% in October, up from 0.2% previously. Another strong reading is expected for November, with a forecast of 1.0%.


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