Asian Currencies Edge Higher as Markets Look to Fed Rate Cut; Rupee Steadies Near Record Lows 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
U.S. Futures Steady as Rate-Cut Bets Rise on Soft Labor Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
Asian Markets Mixed as RBI Cuts Rates and BOJ Signals Possible Hike 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
Dollar Slides to Five-Week Low as Asian Stocks Struggle and Markets Bet on Fed Rate Cut 
Asian Markets Mixed as Fed Rate Cut Bets Grow and Japan’s Nikkei Leads Gains 
Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Euro-area’s GDP growth is expected to recover gradually over the year ahead amid a gentle fall in the unemployment rate and improved productivity growth, according to the latest research report from Oxford Economics.
These factors will support wage increases, which is expected to remain comfortably above 2 percent y/y in nominal terms during 2020. Real wages will also expand, by around 1 percent y/y as inflation stays low.
However, wage increases will still moderate slightly compared to last year. GDP growth and inflation are set to remain weak, and in such an environment firms are reluctant to raise their prices. This is likely to harden their position in wage negotiations.
"But our Phillips Curve analysis suggests some upside risk to our earnings forecast if firms cannot contain these wage pressures in the face of a tight labour market," the report added.
"Our wages outlook means households’ real incomes are set to expand at a slightly slower pace this year, so we think private consumption growth will also slip a little. We expect core inflation to move sideways during 2020 as firms remain hesitant to increase prices, despite low unemployment."
