Scandinavian Economies Under the Microscope with Latest Data Releases

Attention shifts towards Scandinavia as it becomes the center of economic data releases on an otherwise quiet day for international markets. Noteworthy statistics are emerging particularly from the Nordic countries, offering insights into their economic health.

Denmark's Inflation Rates

Denmark is in the spotlight with the release of its Consumer Price Index (CPI) inflation data for December 2023. A rise to 1.1% year-on-year is anticipated, largely attributed to the base effects resulting from the previous year's dip in fuel and electricity costs. Despite the increase, the core inflation pressure is projected to stay subdued, continuing the trend observed over the past several months.

Norway's Core Inflation Persistence

Norway, on the other hand, has been grappling with more persistent inflation rates, a trend expected to sustain with the core CPI inflation likely to remain at 5.6% year-on-year for December. The weakened Norwegian Krone has played a role in this persistency by exerting price pressures both directly and indirectly.

Sweden's Economic Indicators

Sweden also presents a batch of economic indicators for November, with retail sales figures anticipated to reveal the impact of Black Friday on consumer expenditure. Additionally, the production value indicator and new orders will offer a glimpse into the supply-side of the economy, while the GDP-indicator, which is due for release, will provide a broader overview of Sweden's economic standing.

Global economic news adds context to the Scandinavian data points. For instance, Japan's wage data showing weaker growth could impact future policy rate decisions by the Bank of Japan. Geopolitical events, like commentary from the US foreign secretary and concerns from former UK PM David Cameron regarding Israeli actions, may also indirectly affect global market sentiment.

Back in Europe, the previous day witnessed mixed movements with slight yield increases in German government bonds and stable US Treasury yields, while the Eurozone unemployment statistics hit a record low. In Poland, the central bank held its policy rate constant, and in China, there are signals of upcoming monetary easing from the People's Bank of China, indicating possible interest rate cuts.

The performance of equities, foreign exchange rates, and yields on government securities round out the financial landscape. Certain equities saw a retraction after initial gains, while in Europe, yields experienced a slight uptick. Foreign exchange markets saw varied movements, with some currencies, such as the Norwegian Krone, outperforming others.

Scandinavia, Inflation, Economy