Investing
Marketmind: Hawk-eyed
Published by Jessica Weisman-Pitts
Posted on December 16, 2022
3 min readLast updated: February 2, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on December 16, 2022
3 min readLast updated: February 2, 2026
A look at the day ahead in European and global markets from
A look at the day ahead in European and global markets from Ankur Banerjee
Investors have hunkered down with their risk-off hat on, after a central bank bonanza this week (that’s seven central banks on Thursday and the Fed on Wednesday, for those counting) made it clear that interest rates will go up in 2023 for most countries as the battle against inflation rages on.
European Central Bank President Christine Lagarde’s forceful hawkish rhetoric has played Grinch, with little sign yet of a Santa rally as we head towards Christmas and the New Year. Asian equities look set to end the week in the red, snapping their six-week winning streak, while the U.S. dollar straightened its crown as a safe-haven after a recent wobble.
“The market wanted a metaphorical hug that everything will be OK, but central banks have pushed real rates higher,” said Chris Weston, head of research at Pepperstone.
And so, investors will parse every inch of economic data coming through in the near term to gauge inflationary pressures and recessionary signals, with flash PMI data from the Eurozone and the UK on deck for the day.
China was ramping up vaccinations, especially for the elderly, and building stocks of ventilators, essential drugs and test kits in rural areas as the country braces for a surge in COVID-19 cases, while many city dwellers were planning holidays for the first time since the pandemic began.
The initial exuberant reaction to the dismantling of China’s zero-COVID policy has quickly given way to worries that the world’s second biggest economy may be unprepared for the wave of infections to come.
Nearly 200 Chinese companies, including Alibaba and Baidu, heaved a sigh of relief after the U.S. accounting watchdog said it has full access to inspect and investigate firms in China, removing the risk that these companies could be booted off U.S. stock exchanges.
Of course, the worry remains on what the audit is likely to reveal, and that has put a lid on gains for these stocks.
Meanwhile, Twitter suspended the accounts of several prominent journalists who recently wrote about its new owner Elon Musk, with the billionaire tweeting that rules banning the publishing of personal information applied to all, including journalists. “Some time away from Twitter is good for the soul,” Musk tweeted.
Key developments that could influence markets on Friday:
Economic events: Nov UK retail sales, Flash PMI data for UK, Eurozone, Sweden’s unemployment rate for November
(Reporting by Ankur Banerjee; Editing by Edmund Klamann)
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is typically measured by the Consumer Price Index (CPI) or Producer Price Index (PPI).
Central banks are national institutions that manage a country's currency, money supply, and interest rates. They oversee monetary policy and regulate the banking system to ensure economic stability.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives. They play a crucial role in the economy by facilitating capital allocation.
Economic growth is an increase in the production of goods and services in an economy over a period of time, typically measured by the growth rate of real Gross Domestic Product (GDP).
Explore more articles in the Investing category
