Market themes of the Day: Fed rate decision and UK inflation headline
|What you need to know before markets open
Main themes:
- German Ifo business climate index fell to 101.0 points in December from 102.0 points in November, missing the market expectations.
- New Zealand’s current account deficit widened to 3.6% of GDP in the year to September, in line with forecasts.
- The UK headline inflation is expected to decelerate to 2.3% y/y in November with core inflation slowing to 1.8% y/y. For more details read my Preview here.
- The Federal Open Market Committee (FOMC) is widely expected to raise the target range for Fed funds by 25 basis points to 2.25%-2.50% with the market focus on the outlook for rates in 2019. For detail read Joseph’s Preview here.
Europe
- German Ifo business climate indicator is expected to decelerate to 101.7 in December.
UK
- The UK headline inflation is expected to decelerate to 2.3% y/y in November with core inflation slowing to 1.8% y/y. For more details read my Preview here.
- The Confederation of British Industries’ indicator of new orders is set to fall to 6 in December.
Canada
- Canada’s headline inflation is expected to decelerate to 1.9% in November, down from 2.4% y/y in the previous month with the Bank of Canada core inflation expected to slow down to 1.5% y/y in November.
US
- The US housing starts rose 3.5% over the month in November to 1.256 million while building permits rebounded 5.0% m/m to 1.328 million.
- The Federal Open Market Committee (FOMC) is widely expected to raise the target range for Fed funds by 25 basis points to 2.25%-2.50% with the market focus on the outlook for rates in 2019. For detail read Joseph’s Preview here.
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