Market News

German industrial production dropped in December, showed official data on Monday as supply chain bottlenecks and a drop in construction inhibited its economy at the close of last year.

OPEC + producers stuck to the planned moderate output increases on Wednesday, although there were pressures from top consumers to raise production more quickly.

On Wednesday the Federal Reserve said it is likely to raise interest rates in March and reaffirmed its plans to end its bond purchases that month with Jerome Powell, the US central bank chief, pledging it will be a way to help tame away inflation.

German producer prices climbed by 24.2% year on year in December, with the record annual jump driven by higher energy prices, showed official data on Thursday.

US consumer prices climbed solidly in December with the annual increase in inflation, being the largest in nearly four decades. The consumer price index increased 0.5% last month after an 0.8% increase in November, said the Labour Department on Wednesday.

The Eurozone’s economic recovery stumbled in December as new a surging number of COVID-19 infections reduced growth in the bloc’s dominant service industry, showed a survey on Wednesday, and could weaken further if more restrictions come into force.

European stocks dropped more than 2% on Monday amid a global sell-off in equities, with investors worrying about the impact of tighter pandemic curbs on the economy as cases of the Omicron COVID-19 variant surged.

Following its two-day policy meeting, the FED indicated that its inflation target has been met and announced the end of the bond purchases in March paving the way for a three quarter-percentage-point interest rate increases by end of 2022

On Tuesday Germany’s Social Democrats (SPD), Greens and Free Democrats (FDP) signed a coalition deal that sets out how to accelerate a green transition and modernise the economy.

Eurozone inflation soared at its highest rate on record this month amid surging energy costs. The growth in consumer prices accelerated to 4.9% in November, the highest level since the figure has been compiled and up from the 4.1% a month earlier.

US President Joe Biden on Monday nominated Federal Reserve Chair Jerome Powell for a second four-year term. Lael Brainard, the Federal Reserve board member who was the top candidate for the job will be vice chair, said the White House.

European gas prices surged again on Wednesday after a delay in the approval process for a major new pipeline from Russia, which according to German government sources might not be commissioned now, until March next year.