In the week ahead, investors will be focusing their attention on Wednesday’s highly anticipated outcome of the final Federal Reserve meeting of 2015 amid expectations for a 25 basis point rate hike, the first since June 2006.
Wednesday’s survey data on euro zone private sector growth will be scrutinized by market watchers for signs of a recovery in the region.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
1. FOMC rate decision
The Federal Reserve is widely expected to raise interest rates for the first time in nearly a decade at the conclusion of its two day policy meeting at 2:00PM ET on Wednesday. The central bank will also release its latest forecasts for economic growth and interest rates.
Fed Chair Janet Yellen is to hold what will be a closely-watched press conference 30 minutes after the release of the Fed's statement, as investors look for signals about the path of future rate hikes.
Many in the market anticipate the pace of increases to be gradual amid concerns over tepid growth overseas and divergent monetary policies between the U.S. and other nations.
2. U.S. November inflation figures
The Commerce Department will publish inflation figures for November at 8:30AM ET Tuesday. The consensus forecast is that the report will show consumer prices were flat last month, after rising 0.2% in October. Core inflation is forecast to increase 0.2%, after gaining 0.2% a month earlier.
3. Euro zone PMIs
The euro zone is to publish preliminary data on manufacturing and service sector activity for December at 9:00AM in London on Wednesday, or 5:00AM ET. Market analysts expect private sector activity to hold steady this month from a month earlier.
Ahead of the euro zone PMI's, France and Germany will release their own PMI reports at 8:00AM and 8:30AM respectively.
Meanwhile, a pair of reports on German business sentiment will also be in focus. The ZEW Institute's report is due at 10:00AM London time on Tuesday, while the Ifo research institute will publish its own report at 9:00AM on Thursday.
4. BoJ policy announcement
The Bank of Japan's latest monetary policy announcement is due during Asian morning hours on Friday. The BoJ is widely expected to keep policy steady despite recent chatter that it could expand the size of its monthly bond-buying program.
5. U.K. inflation, employment & retail sales data
The U.K. Office for National Statistics will release data on consumer price inflation for November at 9:30AM in London on Tuesday. Analysts expect consumer prices to inch up 0.1%. CPI fell 0.1% a month earlier, underlining concerns over deflationary pressures.
Bank of England officials have said recently they expect inflation to hover around zero for much of this year, before accelerating back to target during 2016 and 2017.
The U.K. October jobs report will be published at 9:30AM on Wednesday. The unemployment rate fell to the lowest level since mid-2008 in September, underlining optimism over the health of the labor market.
On Thursday, the ONS will produce a report on November retail sales at 9:30AM, which will offer further clues on the strength of the economy and the timing of a rate hike by the BOE.
Most market players expect the BOE to begin slowly raising interest rates in mid-2016.