All articles tagged with #central bank decisions
European stocks are expected to open flat as investors await key central bank decisions, with the UK inflation rate cooling to 3.2%, causing the pound to fall against the dollar and euro; U.S. futures declined following mixed jobs data, while Asia-Pacific markets traded mixed.
Signs of progress in US-China trade negotiations sparked a global market rally, with stocks, oil, and copper rising amid expectations of a potential deal, while investors await key central bank rate decisions and corporate earnings reports that could influence market direction into year-end.
Oil prices remained steady as concerns over crude oversupply and softer fuel demand growth persisted. Despite OPEC+ cuts and a pledge to reduce crude oil production, investors remain skeptical about compliance. Non-OPEC countries' output growth is expected to lead to excess supply next year. The market awaits clear data points on voluntary output cuts, which will likely result in volatility and directionless prices. Additionally, weak domestic demand in China and deflationary pressures cast doubt on the country's economic recovery. Investors are also monitoring central bank interest rate decisions and U.S. inflation data for potential impacts on the global economy and oil demand.
Investors will be closely watching the nonfarm payrolls report for November to assess the resilience of the U.S. economy amid higher interest rates. The possibility of a Santa rally in U.S. stocks is being considered following comments from Fed Chair Jerome Powell indicating a more balanced approach to interest rate hikes. Oil prices are expected to remain volatile as skepticism lingers over the depth of OPEC+ supply cuts and concerns about sluggish global manufacturing activity persist. Central bank decisions in Australia and Canada will be monitored, while Eurozone data, including industrial production figures and corporate sentiment surveys, will provide insights into the region's economic performance.
Asia-Pacific markets fell as investors awaited central bank decisions this week, including the U.S. Federal Reserve's announcement on Thursday and Australia's central bank releasing its minutes on Tuesday. The Bank of Japan will conclude its monetary policy meeting on Friday, while the People's Bank of China is expected to release its loan prime rate decisions. Meanwhile, shares of Chinese real estate developer Evergrande tumbled after police detained some staff from its wealth management unit. SoftBank is reportedly planning to invest in artificial intelligence, potentially partnering with OpenAI or investing in rivals. Singapore's non-oil domestic exports declined for the 11th consecutive month, and the inflation outlook in the U.S. fell to its lowest level in over two years. Arm Holdings' shares crawled back slightly after its IPO-driven rally, and the Dollar Index is on track for its longest weekly win streak since 2014. The Nasdaq Composite erased earlier gains, with chip equipment stocks and Netflix among the biggest losers.