This week’s U.S. calendar is packed with key economic data and Federal Reserve commentary, following Friday’s employment figures. Major releases include December Producer Price Index (PPI) and Consumer Price Index (CPI) data on Tuesday and Wednesday, respectively, providing critical insights into inflation trends. Retail sales and industrial production data on Thursday and Friday will offer a glimpse into consumer activity and manufacturing strength. Additional reports include the Fed’s Beige Book, Philly Fed Index, weekly jobless claims, housing starts, and more. Fed officials, including Jeffrey Schmid, John Williams, Austan Goolsbee, Thomas Barkin, and Neel Kashkari, are set to speak, potentially shedding light on the central bank’s policy outlook. On the political front, President-elect Donald Trump’s team is preparing for the January 20 inauguration, with anticipated announcements on fiscal policies likely to influence markets.

China Data to Provide Comprehensive View of Economic Trajectory

Globally, attention shifts to China, where a series of high-impact releases will shape market sentiment. December trade data kicks off the week on Monday, followed by Q4 and 2024 GDP figures on Friday, alongside industrial output, retail sales, urban investment, unemployment, and house prices. Lending data is also expected, offering a broad view of China’s economic recovery and policy direction.

Japan’s Light Calendar Features BOJ Insights and Trade Data

Japan’s economic calendar is lighter, featuring November current account and trade figures, December corporate goods prices, and a speech by BOJ Deputy Governor Ryozo Himino on Tuesday. Markets will look to these data points and BOJ commentary for clues on Japan’s monetary policy trajectory amid global inflationary pressures.

Eurozone and Germany Focus on Growth and Inflation

In Europe, the primary highlight is the final December Harmonized Index of Consumer Prices (HICP) release for the eurozone, accompanied by trade and industrial production data. Germany’s GDP report for 2024 will also be closely watched, providing insights into Europe’s largest economy amid ongoing growth challenges.

Critical UK Data to Shape BOE Policy Expectations

The UK stands out with a dense data calendar, including December CPI, RPI, PPI, retail sales, November GDP, and manufacturing output. These releases are expected to offer a clearer picture of the UK’s inflation trajectory and economic health. Commentary from BOE External MPC member Alan Taylor will add further context to the Bank of England’s outlook.

Australia and New Zealand Highlight Employment and Confidence Data

Australia’s December employment data, due Thursday, will be pivotal for shaping Reserve Bank of Australia (RBA) policy expectations. New Zealand’s focus will be on its Q4 NZIER confidence survey and food inflation data, providing insights into consumer and business sentiment.

Canada’s Political Developments Take Center Stage

Canada’s lighter data slate includes housing starts and trade figures, though political developments are expected to dominate headlines following Prime Minister Justin Trudeau’s resignation. Markets will also closely monitor comments from Bank of Canada Deputy Governor Toni Gravelle on balance sheet normalization, offering insights into the central bank’s policy stance.

Conclusion: Global Data and Central Bank Signals to Drive Market Sentiment

This week’s focus on inflation, growth, and central bank commentary across major economies will likely dominate market sentiment. U.S. data and Fed signals are expected to take center stage, while key releases from China, the UK, and Europe will shape regional outlooks. Markets are poised for heightened volatility as traders digest economic indicators and policy shifts, setting the tone for early 2024.