European stock markets face a new meeting on interest rates next week, in this case the Federal Reserve of the US (Fed), on Wednesday, from which no new increases are expected, unlike last Thursday’s decision of the European Central Bank (ECB)which opted to raise them 25 basis points.
The week in eurozone will begin on Tuesday with the final publication of the year-on-year variation of the general CPI in August, after standing at 5.3% in its first reading, and after the increase in rates by the ECB.
Two days later, the provisional data for September on consumer confidence in the eurozone from the European Commission will be released, and the week will end in the European monetary zone with this month’s preliminary publication of the manufacturing and services PMIs, as highlighted from Singular Bank.
Also on Thursday, in the United Kingdom the Bank of England and it is also expected to raise its interest rates by 25 basis points. A day later the Bank of Japan will meet, and it is expected to maintain its monetary policy unchanged.
Furthermore, in the United Kingdom the year-on-year variation of its CPI for August will be known on Wednesday.
The most anticipated key for the markets will come from the hand of USA in the middle of the week when the Fed’s decision regarding its reference interest rate is known, after deciding last July to resume the increases after pausing them the previous month.
In this sense, CMC Markets market analyst Luis Francisco Ruiz has declared to EFE that the Fed will maintain short-term interest rates in the current range of 5.25%-5.50%, since inflation is more controlled in this country. despite the fact that the general rate has risen a little due to the rise in energy prices.
Investors will be attentive to the statements of the president of the US central bank, Jerome Powellto look for possible clues that could clarify whether the Fed will make an additional 25 basis point hike before the end of 2023.
The week will end in the US with the publication on Friday of the first reading of its September PMIs, data that is also relevant, as highlighted by the CMC Markets analyst, as are the data relating to oil.
In this sense, on Wednesday the crude oil inventories of the International Energy Agency (IEA).
In the Asia-Pacific region, the week will be marked by the meetings of the monetary authorities of China and Japan.
Thus, on Wednesday, the PBOC will publish its one-year prime lending rate in Chinacurrently located at 3.45%, in an environment marked by the complex recovery of its economy after its reopening.
Later on Friday, Bank of Japan will have its rate meeting, after in its previous call it decided to relax its rate curve control strategy.
Ruiz has highlighted the collateral damage that the Japanese currency, the yen, is suffering, which does not stop depreciating, and has referred to some statements that point to a possible intervention by the Bank of Japan to try to control the depreciation of the currency.
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