Look ahead: Consumer related readings from UK, US and eurozone; China loan prime rates; Micron Technology
The health of the consumer swings into focus with the latest inflation print from the UK. The US and the eurozone release consumer confidence readings. Micron Technology is expected to report a rise in quarterly revenue.
(Partial video transcript)
China's loan prime rates
In China, it looks like the loan prime rates will stay the same. For example, the one-year loan prime rates (LPR) is expected to be at 3.45% and the five-year LPR at 4.2%. Last week, the one-year medium-term loan facility rate was kept at 2.5%.
Germany's GFK consumer confidence and producer price index
In Germany and the Eurozone, they're focusing on consumer-related data. They will release numbers about Germany's GFK consumer confidence and producer price index. The DAX which is an important German index, has been going up since mid-October because people are hoping for an early rate cut from the Fed and interest rate cuts by the Europena Central Banks (ECB). The Eurozone's bond yields will go up for the second time this month. This is because more ECB officials are saying the market's expectation of rate cuts in early 2024 is wrong.
The UK consumer price index
In the UK, the consumer price index for November is expected to be 4.4% year-on-year. This is the lowest level of inflation since October 2021. The FTSE 100, an index of foreign companies, has been influenced by the weak pound and expectations of rate cuts.
In the Eurozone, they want to know about consumer confidence. They think the flash figure will be -16.5, which is better than last month's -16.9.
Micron Technology
The US will release data about consumer confidence, existing home sales, and the EIA crude oil inventory report. Some companies will also release their earnings. For example, Micron Technology will talk about their earnings, and General Mills will release their second-quarter numbers. Micron Technology's stock has been going up since March because people want AI chips and big data computing.
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