What to Expect This Week

This week, the United States Federal Open Market Committee will hold its last monetary policy meeting of 2009. We don't expect any change on the benchmark interest rate. Also, inflation may risen again in November due to higher gasoline prices and industrial production to continue its recovery from recessionary levels.

In the Euro Area, manufacturing and composite components of Purchasing Managers Index Survey (PMI) should show a small decline as car scrapping programs expired in November. Moreover, industrial production may continue to be negative as member's country data suggested in October. Yet, in a more positive note, the service sector PMI reading is likely to improve and we also expect an increase in exports for October. In Japan, the Bank of Japan should leave its official borrowing rate unchanged though officials remain concerned about deflation. Elsewhere, Tankan surveys probably improved in November. In the United Kingdom, consumer prices are likely to pick up again in November and retail sales should also show some gains. In Canada, core CPI is likely to edge higher on a month-over-month basis. Finally, in Australia, third quarter GDP is expected to post another gain which will probably lead to another interest rate hike by the Reserve Bank of Australia.

12/13/2009 12:30:30 PM