Welcome to the easyMarkets weekly outlook starting this Monday 13 February. We’ll be looking at the week’s key economic events on the financial calendar covering Monday to Thursday. Be sure to catch up with our Friday morning report that looks back at how the events played out and with a look at Friday’s events. In this week’s economic events calendar we have GDP out of the Eurozone, Producers Price Index from the US, Fed chair Janet Yellen speaking and employment data from down-under in Australia.
Flash estimates published by Eurostat, the EU’s statistical office, showed GDP rose by 0.5% in the euro area compared to the previous quarter. In Q3 of 2016, GDP grew 0.4% and compared to the same quarter of the previous year, seasonally adjusted GDP rose by 1.8%. Overall the GDP for 2016 grew 1.7%. New export orders thanks to a weaker EUR increased prices, a rise in employment supporting consumption, and confidence in the manufacturing sector saw Q4 with the highest performance for the year. Country GDP releases are also expected today with Q4 outlooks for Germany at 0.3%.
U.S. Producer Prices rose in December by 0.3%, slightly above expectations of 0.2%, but still less than the previous month’s 0.4%. Core producer prices rose 0.2% with the PPI index increasing by 1.6% for the last year – a much better result than the 2015 decline of 1.1%. Expectations for this report are for January to increase 0.3%.
Janet Yellen, chair of the US central bank, the Federal Reserve, will be speaking before the Senate Banking Committee in Washington DC. Analysts will be closely following any comments about future interest rate hikes or pauses due to the recent fall of the global stock markets. Uncertainty remains regarding China and trade, even with more positive jobs and wage data.
December employment data surpassed analysts’ expectations in December with 13,500 new jobs added. Unemployment rose from 5.7% to 5.8% as more people entered the jobs market. Biotech giant, CSL were on a big recruiting drive last December which may be one of the reasons why the figures came in so positively for the month.