Stronger than forecast data from China, Japan and the US sparked a global rally in share markets on Friday. The US dollar rose, industrial commodities lifted and futures markets indicate the rally will continue in Asia Pacific trading today. However investors are likely to show some caution ahead of major central bank decisions and further globally important data reads this week.
The US Federal Reserve, the ECB and the Bank of England will issue interest rate announcements this week. While the Fed is almost certain to lift rates by 0.25%, the consensus points to no changes from the ECB and BoE. The central bankers’ take on the state of growth and inflation are potentially market moving. US inflation and retail sales numbers, and November industrial production in China headline a long list of releases this week.
In Australia investors will look to Thursday’s employment data for a read on economic health. The AGM season is winding down but NAB’s meeting on Wednesday means investors are not able to clock off for holidays yet. The positive momentum suggests the Australia 200 index will burst through 6,000 today. A test of the post GFC high at 6,052 is in sight, and Santa could be on his way for investors.