It looks as though it is not only the markets that are winding down for Christmas ….
…. The US has sort of agreed a truce with China, and the UK has kind of averted a political crisis as far as Brexit is concerned. Neither outcomes is conclusive. But good enough for now.
On the economic front, the final reading of the US GDP for the third quarter is expected to show that the economy grew just 2.1%. It is not quite as much as the Trump administration had been bragging about, but respectable, nonetheless.
China could lower its benchmark interest rate, the loan prime rate, from 4.15% to 4.05%. The reduction is not exactly unexpected, given that the Chinese economy is showing signs of coming off the boil.
The Bank of England could keep interest rates unchanged at 0.75%. In October, the Monetary Policy Committee voted by a majority of 7 to 2 to hold the Bank Rate, while the market had expected an unanimous decision.
Staying with central banks, Bank Indonesia is also expected to keep interest rate unchanged. In November, the Bank held its benchmark rate at 5% but lowered the reserve requirement ratio for lenders. elsewhere, the Bank of Thailand could leave its interest rate unchanged, after lowering them by 0.25% during its November meeting.
The UK will announce inflation numbers for November. The core inflation rate is expected to be unchanged at an anaemic 0.1%, while the headline rate could have moderated from 1.5% in October to 1.4%.
And finally, the inflation rate in Singapore could have edged up from 0.4% in October to 0.5% in November. The core inflation could have crept higher too, from 0.6% in the prior month to 0.9% last month.
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None of the information in this article can be constituted as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Disclosure: David Kuo does not own shares in an of the companies mentioned.
