Stock market week with Eurozone inflation figures and US jobs report

Stock market week with Eurozone inflation figures and US jobs report


Photo: ANP

Investors’ attention will be focused next week on fresh data on inflation in the eurozone and the US government’s key jobs report. Developments in the labor market are important to the Federal Reserve’s interest rate policy. If the job market cools more than expected, the central bank may be slow to raise interest rates to counter higher inflation.

The employment report will be released on Friday. Earlier in the week, US employment figures were released by payslip processor ADP. Additionally, there is data on, among other things, consumer spending and Americans’ confidence in the economy. The central bank also publishes what is called the Page Book. This report presents issues related to the US economy. There is speculation that the central bank will raise interest rates less aggressively in the upcoming policy meeting.

Eurostat, the European statistics agency, will release inflation figures for November on Wednesday. In October, inflation in the euro area rose to a new record high of 10.6 percent, driven by higher energy and food prices. The European Central Bank (ECB) has also been raising interest rates to curb inflation.

Statistics Netherlands (CBS) publishes statistics for Dutch inflation according to the European measurement system. In October, Dutch inflation by this method was 16.8 percent on an annual basis. This week, Statistics Netherlands also reports information on retail trade, producer prices and producer confidence.

In addition, market researchers also publish data on industrial activity in countries such as the Netherlands, the Eurozone, and the United States. This indicates the extent to which the industry will be affected by high energy prices, supply problems and a weak economy.

It is very quiet on the business front. Beer brewer Heineken is holding meetings for investors on Thursday and Friday. British airline easyJet publishes results for the last financial year.

The Amsterdam AEX index was a fraction higher at 722.93 points on Friday. Smaller pluses were seen elsewhere in Europe. On Wall Street, there was only half a day of trading on Friday, Black Friday. Stock markets in New York showed a mixed picture.

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