Sentiment restrained to start the week

<p>Kia ora,</p><p>Welcome to Tuesday’s Economy Watch where we follow the economic events and trends that affect Aotearoa/New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news investors are holding back at the start of this week, waiting for a deluge to data to pass first.</p><p>US consumer inflation expectations for the year ahead edged up to a fresh record of 6% in November from 5.7% in October in a <a href="https://www.newyorkfed.org/newsevents/news/research/2021/20211213" target="_blank"><strong>Fed survey</strong></a> that goes back to 2013. Uncertainty rose among those surveyed, but they do see inflation three years ahead being slightly lower at 4.0% that when they were last surveyed in October.</p><p>With inflation running hot, investors are seeking effective hedges, and in the US buying farmland is becoming popular for that. It might become a rush, as bond investors are facing steep losses.</p><p>Markets are in a sort of pause, awaiting the US Fed's December decisions which will come on Thursday NZT. The Fed is expected to accelerate tapering and signal that it will raise interest rates next year. There could be a lot to unpick when their documents are released, so uncertainty is high.</p><p>In China, a growing set of property developers are seeking to have their bonds not rated anymore, to avoid the odour the sector is suffering from. Stalled projects are unravelling their ability to sell off the plans, as buyers recoil from the risks they are taking with contracts like that.</p><p>In Japan, <a href="https://www.esri.cao.go.jp/en/stat/juchu/2021/2110juchu-e.html" target="_blank"><strong>machinery orders</strong></a> rose with a bit more momentum in October from September, and are forecast to rise quite substantially in the October to December quarter.</p><p><a href="https://asia.nikkei.com/Economy/Trade/South-Korea-takes-step-to-join-CPTPP-following-China-and-Taiwan" target="_blank"><strong>South Korea now says it wants to join the CP