Markets: What is most important in the week ahead? – Nordea Markets
Analysts at Nordea Markets point out the most important economic events for markets in the forthcoming week from across the globe.
“The Case-Shiller house price index might receive some attention on Wednesday, but it’s a number from October, and since then mortgage approvals have been rising on the back of plummeting mortgage rates. This might start helping housing activity soon. US consumer confidence and US new home sales are due on Thursday, followed by pending home sales on Friday. We see downside risks to consumer confidence based on recent equity market volatility, although the oil price drop is helpful.”
“Friday will also see preliminary German and Spanish inflation figures. The plunge in oil prices has started to drag inflation lower across the world. A further drop in German inflation and Spanish inflation may be on the cards on Friday, ahead of the more important Euro-area figure on 4 January.”
“While the wage-Phillips curve seems to be alive and kicking also in the Euro area, higher wages do not necessarily translate into markedly higher core inflation. If growth weakens enough (let’s hope not), cost pressures might instead be absorbed by falling profit margins. That would be bad news for the ECB.”