Various events are set to impact the markets this week, most notably the rate decisions of major central banks including the Reserve Bank of Australia and the Bank of Canada. Traders are advised to exercise caution and stay informed about the latest developments to ensure a successful week of trading.
Here are the upcoming market highlights for the week:
Reserve Bank of Australia Rate Statement (5 December 2023)
The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35% in November after maintaining it at 4.1% following its previous four meetings.
Analysts predict that the central bank will keep its cash rate at 4.35% after its upcoming meeting on 5 December.
US ISM Services PMI (5 December 2023)
The Institute of Supply Management (ISM) Non-Manufacturing PMI—also known as the US ISM Services PMI—fell to 51.8 in October, the lowest in five months.
Updated figures will be released on 5 December, with analysts expecting an updated PMI of 52.
Australia Quarterly Gross Domestic Product (6 December 2023)
The Australian economy expanded by 0.4% in Q2 2023.
Analysts predict that the data for Q3, scheduled to be released on 6 December, will indicate slower expansion at 0.3%.
Bank of Canada Rate Statement (6 December 2023)
The Bank of Canada kept the target for its overnight rate at 5% following its October 2023 meeting.
Its next rate statement is scheduled to be released on 6 December, with analysts anticipating that the rate will remain at 5%.
US Jobs Report (8 December 2023)
The US economy added 150,000 jobs in October, a decrease from the 297,000 jobs added in September. Meanwhile, the unemployment rate increased to 3.9% in the same period, slightly exceeding the previous month’s figure of 3.8%.
Updated figures will be released on 8 December, with analysts forecasting the addition of 180,000 more jobs and an unemployment rate of 3.9%.
University of Michigan Consumer Sentiment Index (8 December 2023)
The University of Michigan Consumer Sentiment Index for the US was revised to 61.3 in November from a preliminary figure of 60.4, but it still remained at its lowest level since May.
Updated figures will be released on 8 December, with analysts expecting the index to hit 61.8.
