Leaders, governments, and political parties around the world are now trying to reposition their policies in relation to the well-known views, policies and intentions they can anticipate of the US President-Elect Joe Biden.
Preparation for the Biden Era
Accordingly, global markets are focusing on Joe Biden’s plans, which will be announced gradually with the now start of the transition period.
The issue that the market is largely focused on will be on how Biden’s approach to the coronavirus epidemic will affect the global markets as well as domestic and foreign policy.
The news of a 90 percent success in vaccine trials by Pfizer / BioNTech Monday took stocks in the US and globe high up. News about vaccination plans in the coming days will continue to be effective.
President-Elect Biden called the development ‘excellent’ but reminded that a widespread vaccionations in the US could take months.
EU-US Relations
The foreign ministers of the European Union countries will meet on Monday to discuss future trade relations with the United States after last week’s presidential elections in the US. World Trade Organization reform, the bloc’s approach to China and Brexit will also be on the agenda.
French President Emmanuel Macron will attend the opening ceremony of the Paris Peace Forum on Thursday.
Central Banks
European Central Bank (ECB) policy makers will virtually meet on Wednesday to mark their annual two-day forums.
The bank’s President, Christine Lagarde, will deliver a welcome speech to the forum on Wednesday. Lagarde will take part in a policy panel on Thursday, which will include US Federal Reserve (Fed) Chairman Jay Powell and the Bank of England (BoE) Governor Andrew Bailey.
BoE expanded its bond buying program last week. The bank decided to buy another £ 150 billion, amid growing concerns about the impact of the second wave of Covid-19 and the possibility of a no-deal Brexit trade situation.
RBNZ
The Central Bank of New Zealand (RBNZ) meets on Wednesday. The bank is expected to keep interest rates stable at 0.25%.
Economic Indicators
Analysts will continue to pay attention to the signals of the US economic recovery as US consumer prices are set to be released on Thursday and consumer sentiment data on Friday.
The data to watch this week in the US will be inflation. While China also publishes economic indicators that will show that the recovery after Covid-19 continues, the epidemic will show the impact of the UK’s growth and workforce figures to be announced.
The UK’s third quarter gross domestic product preliminary figures and September unemployment rate will be released. Analysts expect a recovery in GDP on Thursday after the British economy contracted for the fifth time in the last quarter.
Economic Calendar
Monday:
Tuesday: UK Average Earnings Index +Bonus, UK Claimant Count Change, Germany ZEW Economic Sentiment, US EIA Short-Term Energy Outlook, US JOLTs Job Openings
Wednesday: RBNZ Interest Rate Decision, RBNZ Rate Statement, ECB President Lagarde Speaks
Thursday: UK GDP, UK Manufacturing Production, UK Monthly GDP 3M/3M Change, BoE Gov Bailey Speaks, US Core CPI, US Initial Jobless Claims, US Crude Oil Inventories, ECB President Lagarde Speaks
Friday: US PPI, BoE Gov Bailey Speaks
