What to Expect This Week

This week, in the United States, unemployment rate is expected go up to 10.3% and non-farm payrolls are projected to have drop by another 140K in November. Elsewhere, Institute for Supply Management (ISM) Manufacturing Survey and Chicago Purchasing Managers Index (PMI), are likely to show some expansion, but at a weaker pace.

In Europe, the European Central Bank should leave the benchmark interest rate unchanged. However, Trichet is expected to provide some guidance on the monetary policy outlook for 2010. We are also looking for an increase in unemployment across the euro zone despite the implementation of several government schemes to create jobs. In addition, the headline reading for the Euro Area GDP in Q3 is likely to be confirmed with gains in net exports and inventories leading the expansion. In Japan, recent Yen gains are hampering exports and investors will be focused on signals of government intervention on the currency market. In the United Kingdom, we expect further gains in manufacturing and services Purchasing Managers' Index in November. In Canada, real GDP was probably flat in the third quarter, following three consecutive quarters of declines. Yet, employment might have worsened in November. In Australia, the Reserve Bank of Australia will probably hike the cash rate by 25bp to 3.75%. Finally, in China, Purchasing Managers Index is likely to show further improvements but at a far more gradual pace than earlier this year.

Anna Fedec, contact@tradingeconomics.com
11/28/2009 12:00:15 PM