Last week was marked by heavy volatility, with multiple economic indicators and central bank decisions driving sharp reactions across global markets. Here’s a clear breakdown of the key developments: 🇨🇦 Canada – Inflation Update Canadian consumer prices edged higher in November, holding steady from the previous month. Slower growth in services was offset by rising goods prices, keeping overall monthly inflation modest. 🇺🇸 United States – Flash PMI U.S. flash PMI for December showed slower business growth, with modest gains in new orders and softening service-sector demand. Price pressures, however, surged to the highest level since November 2022, largely driven by tariffs. 🇬🇧 United Kingdom – Flash PMI UK flash PMI data showed faster output growth, supported by the strongest rise in new business in 14 months. Despite this, employment declined for the 15th consecutive month, while inflation pressures intensified. 🇺🇸 U.S. Jobs Report
- Payrolls increased by 64,000 in November, slightly above expectations
- Unemployment remained unchanged at 4.6%
- Job gains were led by healthcare and construction
- Federal government employment declined
Payroll figures for August and September were revised down by a combined 33,000, while October data was released for the first time following the shutdown. 🇺🇸 U.S. Retail Sales Retail sales sent mixed signals. Headline sales declined, but core retail sales increased after excluding volatile components, indicating underlying consumer demand remains resilient. 🇬🇧 Bank of England – Interest Rate Decision The Bank of England cut interest rates by 0.25% to 3.75% in a closely split 5–4 vote. Policymakers stressed that future rate cuts will depend on inflation and labor-market data rather than a pre-set easing path into 2026. 🇬🇧 UK Inflation UK inflation continued to cool in November, with CPI and CPIH easing and monthly prices slipping slightly. Core inflation softened, supported by cheaper goods and slower services inflation. 🇯🇵 Japan – Bank of Japan Policy The Bank of Japan continued policy tightening as inflation remained firm and wage growth improved. Governor Ueda signaled a gradual normalization, avoiding aggressive hikes. Markets view the BoJ as cautious but clearly moving away from ultra-loose policy, supporting longer-term yen stabilization.
