Switzerland Gross Domestic Product (GDP) And Spanish CPI Fell Sharply
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Markets await the release of the EU CPI, but before that event we are looking at the CPI reports in Germany and Spain. From North America there are also reports from both the USA and Canada.
Switzerland Gross Domestic Product
Switzerland Gross Domestic Product fell again. This time it was a drastic drop from 2.2% to 0.5%.
On the other hand, the quarterly change in this indicator was higher than the previous reading. GDP Q/Q increased from 0.1% to 0.2%, but was lower than expected (0.3%).
Spanish CPI
At the beginning of the day, the inflation report from Spain appeared. The readings turned out to be lower than expected and also down compared to previous readings.
CPI Y/Y dropped from 7.3% to 6.8%. Natmosiat CPI from month to month fell by as much as 0.6% and reached the level of 6.6%. Growth was expected in both cases. A decrease in this indicator may suggest an improvement in the situation, i.e. prices are not rising but have started to fall. Another reading may confirm this direction.
Harmonised Index of Consumer Prices, is the same as CPI, but with a joint basket of products for all Eurozone member countries. The HICP also fell to 6.6%.
German CPI
The German CPI report is yet to come. CPI Y/Y is expected to maintain its previous level of 10.4%. On the other hand, CPI M/M will fall from 0.9% to -0.2%.
As for the German HICP, it is expected to fall in both cases, ie year-on-year and month-on-month.
The HICP M/M is expected to reach a horizontal 0.1% and if confirmed, it will be lower than the previous one by 1%. HICP Y/Y is expected to decline slightly by 0.3%. The previous reading was 11.6%.
Canada GDP
Canada's Gross Domestic Product report comes out today. The monthly change in GDP is expected to be at the same level as last time, ie 0.1%. This may mean that the Canadian economy is stagnating.
Source: investing.com
On the other hand, the quarterly change shows that the goposadraka is shrinking as it is expected to fall from 0.8% to 0.4%.
Speeches
Today, markets and traders are also waiting for speeches from the ECB and from the UK.
Luis de Guindos, Vice-President of the European Central Bank has already given speeches. This speech took place at 9:10 am CET.
The next speech from the European Central Bank is scheduled for 14:30 CET. Isabel Schnabel, member of the Executive Board of the European Central Bank, is set to speak.
Two speeches are also scheduled from the Bank of England. The first will take place at 13:25 CET. Dr Catherine L Mann, a member of the Monetary Policy Committee (MPC) of the Bank of England, will speak. The next speech is scheduled for 16:00 CET. This time will be Bank of England (BOE) Governor Andrew Bailey. Bailey has more influence over sterling's value than any other person. Traders scrutinize his public engagements for clues regarding future monetary policy.
CB Consumer Confidence
The level of consumer confidence in economic activity expects a drop from 102.5 to 100.0
It is a leading indicator as it can predict consumer spending, which plays a major role in overall economic activity. Higher readings point to higher consumer optimism. But this time pessimistic sentiment is expected, once again. The last worsening took place in October and it may happen again this time.
Summary:
- 9:00 CET Spanish CPI (YoY)
- 9:00 CET Switzerland Gross Domestic Product
- 9:10 CET ECB's De Guindos Speaks
- 13:35 CET BoE MPC Member Mann
- 14:00 CET German CPI (Nov)
- 14:30 CET Canada GDP
- 14:30 CET ECB's Schnabel Speaks
- 16:00 CET BoE Gov Bailey Speaks
- 16:00 CET CB Consumer Confidence
Source: https://www.investing.com/economic-calendar/
