Top events of this week
2022.11.29 02:10
Top events of this week
Budrigannews.com – On Tuesday, support for tired Chinese property developers boosted Asian and Chinese stocks, but inflation is clearly the most important topic for European investors this session.
Markets will be influenced by consumer prices in Germany and Spain ahead of the preliminary November inflation reading on Wednesday.
Even though the numbers are expected to show a slight decline from the record highs set in October, the European Central Bank may need to be convinced much more than that it can slow the rate hike pace.
On Monday, Christine Lagarde, president of the European Central Bank, issued a warning that inflation in the euro area has not yet reached its peak and faces the possibility of rising even further than is currently anticipated.
Joachim Nagel, president of the Bundesbank, predicted that Germany’s inflation would likely remain above 7% in 2019.
According to a Reuters survey of fund managers and strategists, the double whammy of rising rates and the possibility of a recession is bad news for European stocks heading into the coming year.
By the end of June, money markets anticipate ECB interest rate increases of more than 150 basis points.
Inflation in the euro area hit a record high of 10.6% annualized last month. However, economists polled by Reuters anticipate that it will fall to 10.4% in a flash reading on Wednesday.
As concerns regarding China’s stringent COVID-19 curbs have brought global benchmarks to their lowest levels in nearly a year, this could be one swing factor.
The speech that Bank of England governor Andrew Bailey gave to the “State of the Nation” will be the topic of discussion in Britain.
In the meantime, cryptocurrency lender BlockFi became the latest company to go bankrupt when it filed for Chapter 11 protection. The company was hurt when it was exposed to the spectacular collapse of the FTX exchange earlier this month.
Important developments that may have an impact on markets on Tuesday:
monetary data:Germany’s November state and national inflation, Spain’s November flash CPI, the UK’s
October mortgage lender, and the Euro zone’s November sentiment index U.S. economic data: September home prices Speakers:Luis de Guindos, vice president of the ECB, Isabel Schnabel, a member of the ECB board, and Catherine Mann, a member of the Bank of England Monetary Policy Committee
