Dollar Holds Steady as Markets Shift Focus to 2026 Rate Cut Expectations 
Europe Confronts Rising Competitive Pressure as China Accelerates Export-Led Growth 
Asian Currencies Steady as Markets Await Fed Rate Decision; Indian Rupee Hits New Record Low 
Oil Prices Rise as Ukraine Targets Russian Energy Infrastructure 
Citi Sets Bullish 2026 Target for STOXX 600 as Fiscal Support and Monetary Easing Boost Outlook 
European Oil & Gas Stocks Face 2026 With Cautious Outlook Amid Valuation Pressure 
RBI Cuts Repo Rate to 5.25% as Inflation Cools and Growth Outlook Strengthens 
Gold Prices Edge Higher as Markets Await Key U.S. PCE Inflation Data 
BOJ Faces Pressure for Clarity, but Neutral Rate Estimates Likely to Stay Vague 
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."
