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Tuesday 21 January 2025
9 December Market Data: Inflation, Earnings & More
On the week of 09 December, the markets are set for key data releases that can provide valuable insights into the state of the economy and the financial markets.
From inflation to earnings and jobs reports to central bank decisions, here are this week’s upcoming events:
CPI & PPI: US Inflation
Consumer Price Index (CPI) data is one of the most important measures of inflation, often referred to by the Federal Reserve in their monetary policy meetings. As such, given the fact that the Fed’s last meeting of the year is approaching its 17-18 December deadline, this week’s CPI release on Wednesday, 11 December, may be crucial.
Here are the expected results:
MoM core inflation to reach 0.3% (similar to October).
MoM headline inflation to reach 0.2% (same as October).
If the projections come to fruition, it would cause annual CPI to come in at 2.7% from 2.6%. (Source: Seeking Alpha)
Besides CPI, the Producer Price Index (PPI), another inflation measure, is set to be reported on 12 December and will show inflation’s effects on wholesalers.
All in all, the above-mentioned releases will affect the monetary policy of the world’s biggest economy as we near the end of the year. Interestingly, whereas the Fed adopted a more hawkish policy the majority of the year, the expectations point towards another rate cut (by 75 basis points) in its upcoming meeting.
ECB Rate Decision
The Federal Reserve is not the only central bank to hold its final rate decision meeting of the year, as the European Central Bank (ECB) is also expected to decide on interest rates for the last time in 2024.
The ECB is set to meet on Thursday, 12 December, and the majority of economists expect another 25 basis points rate cut. If the expectations are fulfilled, this would mark the Eurozone’s central bank’s fourth rate cut of the year.
Among the factors that will influence the decision are the bloc’s inflation forecasts and the fact that last month’s inflation edged higher, although it neared the ECB’s 2% target range. In addition, geopolitical factors like Trump’s re-election, a weakening euro, and political unrest in some of the bloc’s biggest countries (like Germany and France) will likely affect this week’s decision.
Earnings Reports
Earnings season will continue this week with reports from the following companies:
Monday, 09 December:
Tuesday, 10 December:
Wednesday, 11 December:
Thursday, 12 December:
More Data
Other key data releases for the week include:
Tuesday’s US NFIB Small Business Optimism
Wednesday’s US federal budget
Thursday’s Initial Jobless Claims
Friday’s US import/export price index and UK Gross Domestic Product (GDP)
These releases could also provide important information about what may be waiting for market participants and consumers in the last months of the year,
Conclusion
To conclude, this week is set to be eventful, packed with key reports and releases that can provide important information to consumers, traders, and analysts as we approach the end of the year.
Therefore, keeping track of the results and any other important economic events to come will be important to understanding the possible trajectories of the market and the economy.
*Past performance is no guarantee of future results.
