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The Short US Thanksgiving Week Is Stuffed Full of Market Moving Economic News from Japan and the EuroZone
11/24/2014 5:30 pm EST
Even though it's a shortened week in the US as a result of Thanksgiving on Thursday, the week also brings about plenty of other economic news, according to MoneyShow's Jim Jubak, from countries in other parts of the world that don't celebrate the holiday.
Short week in the United States, but a big week for news from the parts of the world that don't celebrate Thanksgiving on Thursday.
On Thursday alone, the week brings:
- OPEC (Organization of the Petroleum Exporting Countries) meets in Vienna. The top item on the agenda is whether or not to cut production quotas to prop up the price of oil. The countries hardest hit by the over-supply resulting from a slowing global economy and the US energy boom and those countries with budgets most dependent on oil revenues want cuts in production. Or, to be truthful, they want Saudi Arabia, the cartel's swing producer, to cut production. The Saudis and their allies among the Gulf State producers don't seem inclined to cut production. The read among energy analysts before the meeting is that a lack of agreement will push oil prices down toward $60 a barrel.
- New inflation/deflation numbers from Japan. Forecasts now call for inflation to have fallen to 1% in October. That would be the slowest rate of increase in ten months and would put more pressure on the Bank of Japan to do something (including giving in on the need to put off a second round of increases in the national sales tax now slated for October 2015). The news on inflation-remember the Bank of Japan and the Abe government are trying to push inflation upwards toward 2%-could look really, really ugly if the data on industrial production, also to be released on Thursday, show the expected 0.5% drop. Lower inflation and slower growth is not combination Prime Minister Shinzo Abe wants.
On Friday, the EuroZone weighs in:
- Economists surveyed by Bloomberg are predicting that numbers to be released on November 28 will show inflation in the EuroZone falling to the lowest levels since 2009. The inflation rate-at 0.4% in October-already well below the European Central Bank's target of below but near 2% is expected to dip to 0.3%.
- This reading will come just a week before the European Central Bank is scheduled to meet on December 4. Bank President Mario Draghi has been trying to build support at the bank for a full-scale program of quantitative easing that would include the purchase of government debt. So far, he's opposed by Germany, the Netherlands, and Austria, countries which only grudgingly acquiesced in Draghi's current effort to buy corporate asset-backed securities in an effort to weaken the euro and revive growth in the EuroZone.
On Tuesday, November 25, before all these overseas fireworks, the US government will release revised estimates for third quarter US GDP. This revision is likely, economists say, to show a slight drop in the annualized growth rate for the US economy to 3.3% from 3.5%.
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