As we enter the second week of December, the financial markets are gearing up for a dynamic period shaped by significant macroeconomic events. This week’s calendar is brimming with pivotal updates, with central bank rate decisions and critical US inflation data poised to dominate headlines. Investors and traders alike will be closely monitoring these developments, as they are likely to set the tone for global financial markets in the near term.
Several major central banks, including the Reserve Bank of Australia (RBA), the Bank of Canada (BoC), the Swiss National Bank (SNB), and the European Central Bank (ECB), are scheduled to unveil their latest monetary policy decisions. In parallel, the United States will release crucial Consumer Price Index (CPI) and Producer Price Index (PPI) reports, which are anticipated to offer further clarity on the Federal Reserve’s monetary policy trajectory ahead of its upcoming meeting. Additionally, economic updates from various regions will contribute to a packed agenda that promises to keep traders on their toes.
Below is a detailed day-by-day breakdown of the key market-moving events for this week:
Monday, December 9, 2024
- The week begins on a relatively quiet note, with limited activity on the macroeconomic calendar.
- China: Key inflation indicators—Consumer Price Index (CPI) and Producer Price Index (PPI)—are due for release.
- Markets remain reactive to Friday’s US employment data update, with traders analyzing its implications on future Federal Reserve decisions.
Tuesday, December 10, 2024
- Reserve Bank of Australia (RBA): The first significant central bank rate decision of the week is set to be announced during the Asian trading session.
- The rest of the global economic calendar is relatively light, allowing market participants to focus on RBA’s monetary policy stance.
Wednesday, December 11, 2024
- The day starts with a subdued economic schedule during the Asian and European trading sessions.
- United States:
- Release of the final Consumer Price Index (CPI) data ahead of the Federal Reserve’s key meeting next week. This data is expected to draw significant attention during the New York session.
- Bank of Canada (BoC): Announcement of its latest interest rate decision, with markets widely anticipating a 50-basis-point rate cut.
Thursday, December 12, 2024
- Australia: Release of critical employment data during the Asian session.
- Swiss National Bank (SNB): Monetary policy update scheduled during the European session, followed by:
- European Central Bank (ECB): Another crucial rate decision, with market participants watching for any adjustments or forward guidance.
- United States:
- Key economic releases during the New York session, including:
- Producer Price Index (PPI) data.
- Weekly US unemployment claims figures.
- Key economic releases during the New York session, including:
- This is the most eventful day of the week, with high volatility expected across global markets.
Friday, December 13, 2024
- The final trading day of the week is expected to be quieter following Thursday’s flurry of activity.
- United Kingdom: UK markets open with a focus on the latest US GDP data release.
- United States: No major updates are scheduled during the US session, providing smoother trading conditions as the week winds down.
While the early part of the week offers a calm before the storm, the mid-to-late week agenda is packed with high-impact events, culminating in a quieter close on Friday. Market participants should prepare for potential volatility and closely monitor these developments to navigate the trading week effectively.
