The most important economic events expected this week 7 to 11 December 2020

Tuesday, December 08, 2020 - 10:05
Point Trader Group
The most important economic events expected this week 7 to 11 December 2020

Major economies are showing better numbers in the third quarter, but Covid-19 continues to hold back economic growth. This week, we'll take a look at the GDP reports in Japan and the UK, as well as the central bank announcements from the European Central Bank and the Bank of England.

German GDP rebounded again in the third quarter, with a gain of 8.5%. This follows a decline of 9.7% in the second quarter. In France, GDP jumped 18.7% in the third quarter, beating expectations of 18.2%.

The Reserve Bank of Australia held the session at its policy meeting, as policymakers kept interest rates at a very low level of 0.10%. The GDP showed a gain of 3.3% in the third quarter, beating expectations of 2.5%.

Canadian GDP, released monthly, slowed to 0.8% in September as the economic recovery was likely to have run out. Job numbers shine for November. The economy created 62.1k jobs, defying a consensus of 22.0k. The unemployment rate decreased to 8.5%, down from 9.0%.

The US manufacturing sector continued to grow, with the ISM Manufacturing PMI coming in at 57.9, although this was weaker than the previous release at 59.3 points. The ISM Services PMI fell to 55.9, down from 56.6 points. However, this was the sixth consecutive month of expansion. In his testimony on Capitol Hill, Federal Reserve Chairman Powell repeated his message of more fiscal stimulus support from the federal government. Non-farm payrolls fell to 245,000, down sharply from 638,000. This missed the estimate of 480 thousand. Wage growth surprised an increase of 0.3%, higher than estimates of 0.1%.

   Japanese GDP: Monday. Japan's GDP decreased by 7.9%, as the Covid virus severely reduced economic conditions. The economy is expected to rebound again in the third quarter, with estimates of 5.0 per cent.

   European Central Bank interest rate decision: Thursday. The European Central Bank is to hold its policy meeting later this week. The central bank is expected to add further easing, as analysts expect an increase in the pandemic emergency purchase program of 400-600 billion euros.

   French Final Consumer Price Index: Friday. The second largest economy in the Eurozone was unable to generate any inflation, and the CPI hit 0.0% in October. We are now waiting for the November data.

   UK GDP: Thursday. The monthly GDP was indicating slowing growth and the index fell to 1.1% in September. The downtrend is expected to continue in October, with a 0.4% estimate.

   Bank of Canada rate decision: Wednesday. The Bank of Canada holds its monthly policy meeting, as policymakers are expected to keep interest rates at 0.25%. Canada reported some strong data recently, and the positive tone of the price statement could support the CAD.

   US Consumer Price Index: Thursday. Inflation remains at low levels, as the US recovery continues slowly. The headline and core reading is expected at 0.1%.

 

German ZEW Economic Sentiment: Tuesday. The index fell rapidly, dropping to 39.0 in November, indicating a deeper contraction. The estimate for December stands at 45.2.

European Central Bank interest rate decision: Thursday. The European Central Bank is to hold its policy meeting later this week. The central bank is expected to add further easing, as analysts expect an increase in the pandemic emergency purchase program of 400-600 billion euros.

French Final Consumer Price Index: Friday. The second largest economy in the Eurozone was unable to generate any inflation, and the CPI hit 0.0% in October. We are now waiting for the November data.

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