Recession fears are making a comeback and concern over the growth outlook are boosting haven flows and weighing on equities. The coming week features several PMI and GDP reports and sticky inflation out of Australia and New Zealand, while the BoC rate decision and policy statement will be in the spotlight. Note that markets in China, South Korea, and Taiwan will be closed for Lunar New Year holidays, with the former closed through the whole week.
Have a look at the most important events of the coming days in our usual weekly publication.
Monday – 23 January 2023
Chinese New Year ECB President Lagarde Speech (EUR, GMT 17:45)Tuesday – 24 January 2023
Wednesday – 25 January 2023
Consumer Price Inflation (AUD, GMT 00:30) – Australia CPI inflation lifted to 7.3% y/y in November, from 6.9% in the previous month and matching the record high from September. Hence the final Q4 headline reading is expected to lift as well to 7.5% y/y, while the final quarter could ease to 1.6% q/q from 1.8% q/q. BOC Cash Rate & Rate Statement (CAD, GMT 15:00) – The Canada CPI posted a -0.6% decline in December after edging up 0.1% in November. That is much weaker than expected and is the lowest since the -0.7% from April 2020. Though inflation rates remain very elevated, the deceleration in prices, and the weakness in the housing sector, could see the BoC temper the pace of rate hikes at the upcoming policy meeting on January 25.Thursday – 26 January 2023
Friday – 27 January 2023
Click here to access our Economic Calendar
Andria Pichidi
Market Analyst
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