On Wall Street, the indices went into the weekend with losses on Friday, with standard stocks under greater pressure than technology stocks. On Asia's stock exchanges, most stock indices are also trending in negative territory this morning. This despite Japan's central bank chief Haruhiko Kuroda assuring that it is still too early to consider normalizing monetary policy. Kuroda thus supports the view that Japan's central bank will lag other central banks in turning monetary policy around. In China, the central bank cut its key lending rate for the first time since April 2020 to support growth in a slowing economy. The central bank eased the one-year LPR by five basis points to 3.80%, while leaving the five-year LPR unchanged at 4.65%.
Consumer prices in the 19 eurozone countries rose by +4.9% in November on an annual basis. The inflation rate thus reached a new record level, or the highest value since the beginning of monetary union. In October, the annual inflation rate had still been +4.1%. Energy prices increased by +27.5% year-on-year. The core rate, i.e. excluding energy prices, rose from +2.0% in October to +2.6%. Last Thursday, at its last interest rate decision this year, the ECB reiterated its assessment that the massive increase in inflationary pressure was merely a temporary phenomenon but acknowledged rising risks regarding its inflation outlook.
The business climate barometer published monthly by Munich-based economic research institute Ifo dimmed for the sixth month in a row in December and now stands at 94.7 points (consensus 95.3), the lowest level since February this year. Consumer-related service companies and the retail sector are being hit hard by the worsening pandemic situation, Ifo commented. In manufacturing, on the other hand, sentiment had improved slightly despite ongoing supply bottlenecks for intermediate products and raw materials.
The Russian central bank raised interest rates by 100 basis points to 8.5% in response to increasing inflationary pressure. In November, the inflation rate in Russia reached +8.4%. The Bank of Russia also held out the prospect of further interest rate steps.
|16:00||US||Leading Indicator (November, m/m)||+0.9%|
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