Economic wrap and data outlook - Westpac

Analysts at Westpac offered their economic wrap and the outlook for immediate data risks.

Key Quotes:

FOMC member Bostic said it may not need to hike 3 to 4 times this year, concerned about inflation missing Fed forecasts and the risk that inflation expectations become anchored below 2%.

Event Risk

Australia: Nov dwelling approvals are expected to fall 1.0%, reversing Oct’s 0.9% gain. Westpac sees a 1.5% drop with Vic likely to unwind a 24.2% jump driven by high rise approvals. Dec ANZ job ads were last up 1.5% in Nov. Employment growth has relatively outperformed job ads in 2017.

Euro Area: The Nov unemployment rate is expected to confirm the flash reading of 8.8%.

Germany: Nov industrial production had previously surprised to the downside in Oct, -1.4%, following an upgrade to Sep’s figures. PMIs suggest a bounce.

US: Dec NFIB small business optimism is expected to remain around highs, with owners anticipating stronger economic growth. Nov JOLTS data will provide detail on the labour market. Fedspeak involves Rosengren at the Brookings Institution inflation targeting conference, and Kashkari on a panel in Minnesota. Both are non-voters in 2018.