Another incentives from the Bank of Japan

Financial and commodity markets analytics

Market Watch review. 09.12.2020

In today's release, we’ll cover the following topics:

  •     • Japan's GDP growth and new incentives.
  •     • Fateful dinner for Brexit.
  •     • Investor sentiment in Germany. 

Japan's GDP growth in the third quarter was revised from 21.4 % to a record 22.9 % year-on-year as business and consumer spending recovered from the spring shock of the COVID-19 pandemic. In the second quarter, the economy collapsed by an unprecedented 28.1%.

An upward revision of GDP growth estimates for the third quarter and a sharp rise in household spending in October support the view that Japan's economy will recover from the pandemic faster than expected.

Due to the incomplete economic recovery on the day of publication of the data, Prime Minister Yoshihide Suga announced the start of the next package of measures to stimulate the economy in the amount of $ 706 billion.

Britain formally withdrew from the European Union on January 31 this year, but in fact remains part of the EU until December 31. During these 11 months of transition, the parties had to agree on how to live and trade, and intended, in particular, to maintain free trade without duties and quotas, but have not yet been able to agree on anything. 

British Prime Minister Boris Johnson is leaving for Brussels on Wednesday for talks with the head of the European Commission, Ursula von der Leyen. At dinner he is expected to make another attempt to negotiate a trade agreement with the EU.

Apparently, this will be the last attempt to resolve the trade issue before December 31, when Britain will finally leave the EU.

The announcement of soon approval of vaccines makes financial market experts more confident in the future. A ZEW survey showed that investor sentiment in Germany rose in December in hopes that coronavirus vaccines would improve economic prospects.

The index of economic investor sentiment rose to 55 from 39 in the previous month. Economists expected less significant growth to 45.5 points. 

Closely monitor the news background and be prepared for all the surprises of the market.