Look ahead: Japan core CPI; UK retail sales, US Core PCE
Inflation and the consumer remain a big focus as we count down to the end of 2023.
Look out for inflation figures from Japan, retail sales and GDP growth data from the United Kingdom and the key data point, watched by the Fed, is the Core PCE from the United States.
(AI Video Summary)
Focus on inflation and consumer trends
In today's "Look ahead", Angeline Ong gives us a sneak peek of the important information we need to pay attention to on Friday 22 December. The focus of the video will be on inflation and consumer trends. Let's start with Japan: their core consumer price index for November is expected to show a 2.5% increase compared to last year. Now, the value of the Japanese yen against the US dollar has been a hot topic this year with lots of ups and downs. Recently, there has been heavy selling happening on Wall Street, which has caused people to be cautious with their investments. As a result, the yen, which is considered a safe investment, has been affected. The Bank of Japan's negative interest rates have also caused the yen to lose some value against the dollar this year.
UK to release key data points
Moving on to the United Kingdom, they will be releasing retail sales figures and the final reading of the Q3 GDP growth rate. The British pound had a little setback after hearing that the US Federal Reserve would be changing their approach, and also due to lower than expected inflation in the UK. The drop in inflation raised hopes that the Bank of England might reduce interest rates soon.
News out of the US
Lastly, let's focus on the United States. There are a few key data points we need to pay attention to here. First, the core PCE price index, which tells us about consumer spending and inflation. Next, durable goods orders, which are indicators of the health of the manufacturing industry. Also, personal income and spending, which gives us a sense of how much people are earning and how much they're spending. Finally, new home sales, which is an important measure of the real estate market. The Baker Hughes oil rig count also might affect oil prices. Currently, oil prices are around $73 per barrel for WTI and $79 per barrel for Brent crude. The increase in US oil inventories is affecting prices, but concerns over trade issues in the Red Sea are also playing a part.
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