UK Employment data: UK employment data was weaker than expected in November, as the
number of people claiming unemployment benefits increased by 2,400 to 809,000 and the
employment rate edged lower to 74.4% in the three months to October.
This is the first real disappointment since the Brexit vote, showing the UK market is losing steam
following the EU referendum. Meanwhile, average pay picked up more than expected to 2.6%, or
2.5% excluding bonuses, but the number of people out of work considered “economically inactive”
jumped by 76,000 over the period to 8.9 million.
US Inflation data: U.S. consumer prices grew at a slower pace in November, but the underlying
trend continued to show inflation pressures amid rising rents. Consumer Price increased 0.2%,
in line with market forecast, following a 0.4% increase in October. On a yearly base, the CPI increased
1.7%, the biggest year-on-year gain since October 2014.
The CPI rose 1.6 percent in the year to October. The Fed raised its benchmark overnight interest rate
by 25 basis points to a range of 0.50% to 0.75% as a vote of confidence in the economy. The central
bank forecast three rate hikes in 2017 amid U.S. President-elect Donald Trump’s fiscal plans to boost
growth through infrastructure spending and tax cuts.
Canadian rate decision: Canada’s central bank maintained its overnight rate at 0.5% at its December’s
meeting. Despite an improvement in global conditions, uncertainty remains high, badly affecting business
confidence and investment. The BOC said that Canada’s economy has room for improvement and that the
fiscal and trade policy is yet unknown. The Canadian dollar is losing strength and household imbalances
have risen once again.
Janet Yellen speaks: Federal Reserve Chair Janet Yellen will speak in San Francisco. Market volatility is expected.
Have an INVESTOR Mindset, but Trade like an ENTREPRENEUR