Investors have a date with another handful and hectic week with major data to be revealed following last week’s data from the manufacturing, services and labor sectors.
This week will mainly focus on Central Bank’s decisions where the ECB and the BoE will present the first rate decision in 2011, along with providing investors with the outlook of the region as more data clears the performance in the fourth-quarter of 2010.
Euro Zone Data
Starting with the euro-zone, the week will commence with data that holds little importance to markets, where the industrial production for November will be released, with expectations that the sector’s conditions slowed slightly.
Following that, the ECB will announce its rate decision on January 13, which the bank is highly predicted to preserve at the current low record of 1.00 percent.
Trade figures along with inflationary gauge will also be released later this week, with expectations that the rise in the value of the euro during November, failed to influence prices or have a severe effect on exports.
Inflation still checks with regulators’ limits, where the core CPI in December probably preserved its 1.1 percent rise for another month. Meanwhile, the trade balance will probably show a surplus of €1.7 billion on a seasonally adjusted basis, compared with the previous €3.6 billion surplus.
Debt woes remain the major issue in the euro-zone, where the third quarter growth figures that was presented Friday, expressed the scrutiny of government debt on growth as the final GDP for the 16-nation economy back then was revised lower to 0.3 percent, from the previous 0.4 percent advanced reading.
Unemployment remained at 10.1 percent in November with expectations that the labor sector will suffer more as governments continue on slashing spending and public jobs in the region.
The main driver for growth in the region remains Germany, where the Federal Statistics Office will release its 2010 GDP figures with expectations that the economy managed to expand more than 3.5 percent.
UK Data
U.K trade deficit on the other hand is expected to have continued to widen in the previous period, where the visible trade deficit is expected at 8.33 million pounds in November, while the non-EU trade balance will show a deficit of 4.8 million pounds.
The manufacturing and industrial production probably increased in November with the industrial production rising by 0.5% and the manufacturing production rising by 0.4%. On the year, the industrial production rose by 3.3% while the manufacturing production rose by 5.3%.
The highlight of the week in UK will arrive from the BoE, as it the MPC announce the rate decision, where the bank is expected to preserve rates at 0.50 percent, while keeping the APF purchases at £200.0 billion.
Further clues will be sought from the bank on the outlook of the economy, which will provide a clearer picture for investors on what to expect throughout 2011.
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