Europe Calendar - The Week Ahead

Activity on the European calendar will remain brisk in the week ahead, with several notable economic updates, including a fresh gauge of Euro Area inflation and consumer confidence. Market participants will also be watching the Bank of England’s monetary policy decisions closely, as well as any signs of progress on Brexit.

Monday, December 17

The week shifts into high gear on Monday, beginning with Turkey’s unemployment rate for September.

The Turkish economy has been suffering from a slowdown in domestic demand, as well as private consumption and investment spending, amid tighter financial and credit conditions, and with leading indicators pointing to a sustained increase in unemployment.

The number of unemployed persons in September rose by 330k to 3.75m compared to the same year-ago period, with the unemployment rate up 0.8% to 11.4%.

Meanwhile, the first estimate for euro area exports rose 11.4% year-on-year in October 2018 to €209.7bn, while imports surged 14.8% to €195.8bn over the same period. As a result, the euro area recorded a €14.0bn surplus, according to Eurostat.

However, Euro Are inflation dipped lower, despite efforts by the European Central Bank to stimulate the economy.

 

While the annual rate increased from its 1.5% clip last year, it slowed to 1.9% in November from 2.2% in the prior month, with the largest drags incurred by Denmark (0.7%), Ireland (0.8%) and Portugal (0.9%).

In late November, ECB president Mario Draghi said before the European Parliament’s Committee on Economic and Monetary Affairs that a slowdown in euro area growth mainly reflects weaker trade growth, but also some country and sector-specific factors, while the employment is expected to slow somewhat as labor supply shortages become more binding.

The ECB at its December 13 monetary policy meeting elected to keep its key interest rates unchanged and announced the end of its asset purchase program.

Germany’s contribution to euro area growth has also been a drag on the broader economy.

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