In a week marked by significant financial activities globally, the economic landscape continues to evolve with various nations engaging in crucial monetary undertakings. The Bank of France projects a modest GDP growth for the first quarter, while Portugal's Debt Agency plans substantial bond sales. Simultaneously, prominent economic figures, such as Germany's ECB member Nagel, are set to deliver important speeches. Key economic data releases and monetary decisions from institutions like the Bank of Canada and the Bank of Japan are also on the agenda, influencing global markets. Meanwhile, financial statistics from Italy, South Korea, and India further contribute to the dynamic economic milieu.
The Bank of France has forecasted a GDP growth rate between 0.1% and 0.2% for the first quarter. This projection indicates a cautious optimism amidst ongoing economic uncertainties. The slight upward trajectory reflects efforts to stabilize the economy amidst external challenges.
Portugal's Debt Agency (IGCP) is preparing to sell between €1.25 billion and €1.5 billion in OT bonds maturing in 2034, 2042, and 2052. This move aims to manage national debt efficiently while supporting financial stability in the long term.
In London, Germany's ECB member Nagel will address attendees at an OMFIF event at 12:00 CET. His speech is highly anticipated as it may provide insights into future monetary policy directions within the eurozone.
The Bank of Canada will release its Summary of Deliberations at 13:30 EST. This document will offer a glimpse into the rationale behind recent monetary policy decisions, potentially impacting investor sentiment and financial markets.
Italy's industrial production for December showed a month-over-month decline of 3.1%, significantly missing expectations of a 0.2% decrease. On a year-over-year basis, production contracted by 7.1%, compared to an expected decline of 2.5%. These figures underscore the challenges faced by Italy's manufacturing sector.
In Europe, daily ECB liquidity statistics are scheduled for release at 05:25 CET, providing critical insights into market liquidity conditions across the European Union.
The US Treasury plans to sell 17-week bills at 11:30 EST, as part of its regular schedule to manage government financing needs efficiently.
The Bank of Japan will conduct an outright bond purchase operation across various maturities at 20:10 JST. This action underscores its ongoing commitment to maintaining favorable financial conditions.
The USD/JPY currency pair hovered around 153.50, influenced by the higher US 10-year yield. By mid-session, the yield on the US 10-year bond stood at 4.51%, reflecting market reactions to ongoing economic developments.
The Czech Central Bank will comment on CPI data at 07:00 CET, offering insights into inflation trends and potential policy responses.
South Korea reported a December M2 money supply increase of 0.8%, with no prior estimate available. Additionally, the 'L' money supply rose by 0.7%, again without previous estimates for comparison. These figures indicate a slight expansion in monetary aggregates.
India successfully sold a total of INR280 billion in three-month, six-month, and twelve-month bills, reflecting steady demand for short-term government securities.
US futures traded at -0.1%, indicating cautious sentiment among investors amid prevailing uncertainties.
In a statement, Fed's Williams emphasized that inflation expectations remain well-anchored, although he acknowledged significant uncertainty in the economic outlook due to evolving government policies.