Investors will test the evolution of the main world economies next week with the publication on both sides of the Atlantic of new data on inflation and growth in Gross Domestic Product. However, it will be European stock market which will react almost alone to these new macroeconomic references because Thursday is a holiday in the United States, for Thanksgiving Day, and to leave Wall Street without activity that day and in the middle of the session next Friday.
Even if the week will be rich in data from Monday, the first update on monetary policy will come with the publication of the latest minutes from the American Federal Reserve (Fed). In other words, they will be the keys to the last Fed meeting before the announcement of Donald Trump’s Republican victory, at a time when the market estimates, according to Bloomberg, that no further reduction in interest rates will take place in 2024 by the Fed.
Next Wednesday, preliminary data on quarterly US GDP growth will be released, which is expected to be 2.8%, according to Bloomberg. There will also be an update on new home sales which would indicate a decline compared to the previous month and the new data on consumer prices which would increase by a tenth to 2.8%.
On the European side, from Thursday the Consumer Price Index (CPI) will arrive from Germany, Spain and France, among others, and in all these cases the month of November would show an increase in inflation in the main economies of the euro zone. . Thus, the expert consensus expects the Eurozone CPI to rebound by three tenths of a percentage point to 2.3%would be the highest figure since August this year, with core inflation also rebounding.
