Global Markets Prepare for a Crucial Week
Global markets are heading into a significant week, with major events set to shape the outlook for the year ahead. In Europe, leaders of the European Union will meet to discuss using frozen Russian assets to support Ukraine. The proposal involves tapping into around €210 billion of Russian funds held in Europe, mostly in cash in Belgium.
European Union Meeting and Russian Assets
The European Union meeting aims to reach a consensus on using these assets, which represent Europe's most significant leverage in discussions surrounding a potential settlement to the Ukraine war. However, the issue has exposed deep divisions within the bloc, with concerns about legal precedent and investor fallout weighing heavily.
US Economic Data Releases
Across the Atlantic, investors will finally receive a clearer picture of the US economy as a series of delayed data points are released. The November non-farm payrolls report is expected to show subdued job creation, reflecting signs of a cooling labor market. Additional delayed indicators, including October retail sales and November consumer price inflation, will also be released, helping shape expectations around the Federal Reserve's next move.
Central Bank Meetings
In Asia, the Bank of Japan is expected to raise interest rates, with short-term Japanese government bond yields surging to multi-year highs. The European Central Bank will also meet, with markets expecting no change in interest rates. The Bank of England is widely expected to cut interest rates, but uncertainty surrounds the outlook beyond this decision.
Key Events to Watch
- European Union meeting to discuss using frozen Russian assets to support Ukraine
- US economic data releases, including November non-farm payrolls report and October retail sales
- Bank of Japan meeting to discuss interest rate hike
- European Central Bank meeting to discuss interest rates
- Bank of England meeting to discuss interest rate cut
These events will have a significant impact on global markets, with policymakers balancing slowing growth, stubborn