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- The Federal Reserve gathers for its final meeting of 2021 to decide on interest rates
- Inflation data from Europe and the UK will highlight pace of consumer price growth
A Key Week Ahead for Financial Markets
The week starting Monday, December 13, promises to be a highly important time for financial markets. Starting tomorrow, investors will be watching several major events, including a Fed conference, inflation data, and interest rates decisions.
On Monday, a calm market environment is expected as traders shift their attention to the US presenting later in the week.
On Tuesday, the UK reveals its claimant count change for November at 02:00 am ET. Later, at 08:30 am ET, the US publishes its producer price index (PPI) for November.
On Wednesday, the whole financial world will be watching the final conference of the US Federal Reserve for the year. Slated for 02:00 pm ET, the grand event will unveil the Fed’s decision on interest rates heading into the new year. Further, Fed officials will present their economic projections as well as the Fed statement.
Fed Chair Powell to Speak on Wednesday
What’s more important, Fed Chairman Jerome Powell is expected to hold a press conference at 02:30 pm ET. He will most likely offer clues into the Fed’s plans for tapering, or reducing, the vast monetary support.
On the back of surging inflation, some analysts speculate he could announce a quicker pace of stimulus withdrawal to cool down the US economy. The event will almost certainly result in increased volatility across markets and asset classes.
Also on Wednesday, the UK will reveal its inflation data at 02:00 am ET. Next, at 08:30 am ET, the US reports its retail sales numbers for November. Later, at 03:45 pm ET, New Zealand will publish its GDP number for the third quarter. At 07:30 pm ET, Australia reports its employment change for November.
On Thursday, Switzerland kickstarts the day with the Swiss National Bank interest rate decision at 03:30 am ET. At the same time, Germany will publish its manufacturing PMI data.
Interest Rate Decision from the Bank of England
At 07:00 am ET, the Bank of England will announce its own interest rate decision for December. Just 15 minutes later, at 07:45 am ET, the European Central Bank reveals its interest rate decision, also for December.
On Friday, Germany shifts into gear at 04:00 am ET with its Ifo Business Climate Index for December. An hour later, at 05:00 am ET, Europe publishes its inflation report for the month of November.