LONDON (Reuters] – Markets will slow down over the holiday break. Let’s just not declare it over yet.

Although most central banks are wrapping up their meetings for this year, they have also raised new questions that investors can consider. U.S. data should, however, shed some light on consumers’ performance in the face of rising prices and Omicron COVID, which is rapidly spreading.

Here’s your week ahead in markets from Ira Iosebashvili https://www.reuters.com/journalists/ira-iosebashvili in New York, Vidya Ranganathan https://www.reuters.com/journalists/vidya-ranganathan in Singapore, and Sujata Rao https://www.reuters.com/journalists/sujata-rao, Karin Strohecker https://www.reuters.com/journalists/karin-strohecker and Dhara Ranasinghe https://www.reuters.com/journalists/dhara-ranasinghe in London.

Take Five will be taking a holiday on December 24th and 31st, but is looking forward to coming back in the new year.

1 DONE AND DUTTED

With December’s deluge of central bank meetings done and dusted https://www.reuters.com/markets/europe/boe-hikes-fed-pivots-ecb-rolls-slow-pandemic-exits-diverge-2021-12-16, markets can cruise into year-end, right?

Not quite. The Bank of England, for one, has left investors confounded for the second time in six weeks, as a surprise rate hike https://www.reuters.com/markets/europe/inflation-risk-omicron-slowdown-boe-rate-move-balance-2021-12-16 again raised questions about its communication style.

The European Central Bank, in the spirit of Christmas perhaps, gave something to everyone – ending emergency stimulus next year https://www.reuters.com/markets/rates-bonds/ecb-set-dial-back-stimulus-one-more-notch-2021-12-15 cheers the hawks, opting for an open-ended existing asset purchase scheme makes the doves happy. The rising yields of peripheral bonds suggests some concern about easing support.

The Federal Reserve seems to have raised rate prospects and set the stage for an uncertain 2022. Central bankers are charting their exit routes at drastically different speeds.

HOLIDAY HEAR VS HOLIDAY Cheer

‘Tis the season to be shopping, but just how cheerful are U.S. shoppers in the face of soaring prices and Omicron https://www.reuters.com/world/us/omicron-estimated-be-29-covid-19-variants-us-cdc-2021-12-14?

On Wednesday, the U.S. consumer confidence Index for December is due. Thursday’s November home sales, consumer spending, and durable goods orders are also expected to provide some clues.

U.S. consumer prices grew at their fastest pace in around four decades in November https://www.reuters.com/markets/us/us-consumer-prices-increase-further-november-2021-12-10. At the Fed, any indications that higher living costs or pandemic fatigue may be affecting spending (which accounts for nearly two thirds U.S. GDP) will not make it easy reading.

After all, the central bank just doubled the pace at which it will cut bond purchases and signalled as many as three rate hikes for 2022 https://www.reuters.com/markets/us/fed-prepares-stiffen-inflation-response-post-transitory-world-2021-12-15.

BOJO TO GO?

His tenure as British Prime Minister Boris Johnson is shaky two years after his party won elections.

A revolt https://www.reuters.com/world/uk/british-pm-johnson-faces-rebellion-parliament-over-covid-measures-2021-12-14 by 100 lawmakers, scandals, the loss of a parliamentary seat his party had dominated for 200 years https://www.reuters.com/world/britains-liberal-democrats-predict-big-upset-parliamentary-vote-2021-12-17, and a stuttering economy mean bookies are offering even money that he will be replaced in 2022. A majority of voters think he should resign, one poll found https://www.reuters.com/world/uk/support-uk-pm-johnson-party-sinking-amid-scandals-poll-2021-12-11.

Britain’s post-pandemic recovery was already halted when Brexit occurred. An Omicron “tidal waves” (Johnson’s terms) is now a bigger problem. Private sector growth plunged in December to a 10-month low, PMIs https://www.reuters.com/markets/europe/omicron-hits-uk-businesses-hard-december-pmi-2021-12-16 showed, yet 5%-plus inflation may force the Bank of England into several rate hikes next year.

On Dec. 22, final Q3 GDP readings may confirm Britain’s economy falling behind G7 peers https://www.reuters.com/world/uk/uk-economy-grows-06-sept-after-weak-summer-ons-2021-11-11. Unsurprisingly, British stocks https://www.reuters.com/markets/europe/cheap-unloved-uk-plc-still-cant-shake-risk-discount-2021-12-14′ 35% price discount versus global peers has not stopped investors from voting with their feet.

4/CHILE COMES CHOOSINGS

Chilean leftist Gabriel Boric won the country’s presidential runoff election on Sunday, capping a major revival https://www.reuters.com/world/americas/chile-heads-polls-with-two-models-nation-stake-2021-12-19 for the country’s progressive left that has been on the rise since widespread protests roiled the Andean country two years ago.

Latin America is currently in a period of high political risk. This year has seen volatile leaders and income inequalities. There have been disappointing growth results, as well as high COVID-19, which led to a lot more uncertainty.

In 2022, the regional election cycle will continue. Colombia is scheduled to hold congressional https://www.reuters.com/world/americas/colombia-presidential-hopeful-fajardo-seek-safeguards-after-ruling-against-him-2021-11-30 elections in March https://www.reuters.com/world/americas/colombia-ex-rebels-grow-disillusioned-with-farc-party-5-years-after-peace-2021-12-02 and a presidential ballot in May. Brazil’s general elections in October will dominate investor’s attention, due to the country’s strong economic position in the region. So far, former leftist leader Luiz Inacio Lula da Silva https://www.reuters.com/world/americas/leftist-lula-maintains-dominant-lead-brazilian-election-poll-shows-2021-12-14 has a comfortable lead in polls.

5. MAKING SENSES OF CHINA

Investors are trying to work out just what China’s top leaders https://www.reuters.com/markets/currencies/china-says-it-will-focus-economic-stability-2022-2021-12-10 meant when they said recently that next year would be all about economic stability and prudent monetary policy.

The likes of JPMorgan (NYSE:) peg growth estimates around 5% https://www.reuters.com/world/china/jpmorgan-raises-china-q4-2022-gdp-forecast-2021-12-15, close to what government advisers recommend. It is possible that policy will be tailored in order to achieve the “common prosperity”, which was the objective of the Communist Party’s 20th National Congress.

However, bond markets remain confused. The central bank has infused cash into banks https://www.reuters.com/markets/rates-bonds/china-cbank-injects-500-bln-yuan-via-medium-term-loans-rate-unchanged-statement-2021-12-15 while trying to rein in a strong yuan. But, last week’s expectations of a decrease in the main money market operations rate were not met.

Beijing may have set goals for stability and deleveraging, which could indicate that banks’ lending standards won’t be affected this week.