Global recovery remains some way off as there are fears that the Fed may continue tightening until it tips the economy into a recession.
However, easing containment measures in China is a balm for the world’s second-largest economy.
Also, economists expect stronger economic growth for the third quarter despite ‘considerable volatility’ in monthly indicators.
Last week saw the S&P 500, Nasdaq and Dow Jones all notch up their second weekly gains in a row, with a 2% rise in the Nasdaq leading the way.
Markets clawed back from lows on Friday after the strong November jobs report raised doubts over the Fed’s ability to slow the pace of rate hikes.
Friday’s jobs report showed that hiring remained strong last month while average hourly earnings increased muddied the outlook.
Traders are to see if the rally can survive this week’s U.S. economic data offering.
Federal Reserve policymakers are in their traditional blackout period ahead of their final policy meeting for 2022.
ECB President Lagarde is to make two appearances this week before the start of the ECB’s blackout period.
The U.S. is to release CPI data next week ahead of the Fed’s final meeting of the year on Dec 13-14.
Global recovery remains some way off – Data speaks for itself
The U.S. is to release November PPI data on Friday, with the headline figure expected to rise 7.2% yearly. In addition, investors will look to the producer price inflation data for clues about how hawkish the Fed may be.
Besides PPI figures, the economic calendar for this week also includes Thursday’s weekly report of initial jobless claims.
The Bank of Canada is to deliver what will be closely watched interest rate decisions on Wednesday. Markets and economists are split about whether the BOC will hike rates by 25 or 50 basis points.
For more market events, watch our Economic Calendar.
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