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This morning, UK headline CPI for November was released, coming in below expectations at 3.2%, down from 3.6% in October. The slowdown was driven by weaker food and core goods inflation, which helped ease overall price pressures.
This week, traders have the Fed’s last monetary policy meeting of the year in focus (a decision will be made by Wednesday). The Fed has a duty to cater to their dual mandate of stability in price growth and maintain strength in the labour market.
On Monday, fresh data showed that China’s factory activity improved marginally in November, although it remained in contractionary territory. The composite PMI slipped to 49.7, signalling ongoing weakness - since readings above 50 indicate expansion, while those below reflect contraction.