After several weeks of rising trading activity, in the week ahead trading volumes are expected to remain light as we have entered a quiet period leading up to Christmas. The U.S. markets will close early on Christmas Eve, while some of the European markets will already be on break. Therefore, I would expect activity to be thin and movements to be much more technical than fundamental.
The previous week, the U.S. Federal Reserve wrote history when it raised its benchmark interest rate target by 0.25%. This is the Fed’s first rate increase since June 2006. Following the announcement, the U.S. dollar strengthened against its main rivals.
[B]Monday [/B]is a quiet day in terms of economic data, figures on Producer Price Index for Germany will be released at 07:00 GMT. Shortly afterwards, Deutsche Bundesbank releases the German Buba Monthly Report, which contains statistical tables, speeches and analysis of current and future economic conditions from the bank’s viewpoint. Also being released today will be the Eurozone Consumer Confidence figure, which is expected to remain at -5.9. No U.S. indicators out today, only 3- and 6-Month bill auctions.
[B]Tuesday [/B]will be heavy in terms of U.S. domestic data. The final U.S. GDP for the third quarter will be out, expected to confirm the preliminary figures, 2.1% yoy. The Personal Consumption Expenditures for the same quarter and the Existing Home Sales for November will be out as well. In New Zealand, the detailed Trade Balance will be released.
On [B]Wednesday[/B], attention turned to the U.S. and the UK. The final GDP growth for the UK economy will attract some attention. On a yearly basis, the growth is expected to be 2.3% while on a quarterly basis 0.5%. On the second half of the trading day, the US Durable Goods for November are forecasted to show a contraction of 0.7% from a growth of 3.0% the month before. In Canada, the GDP and the Retail Sales are also coming out. Overnight, the Bank of Japan will release the minutes of their last policy meeting followed from a speech by BoJ Governor Kuroda.
On [B]Thursday[/B], only Japan releases news on the macroeconomic front as the most financial firms and Stock Exchanges are closed due to Christmas Eve. In Japans, the inflation report will be published alongside with the unemployment rate for November.
[B]Friday [/B]is CHRISTMAS DAY!!!
[B]Trading Activity[/B]
Both the NYSE and the Nasdaq Stock Market close at 13:00 p.m. Eastern Time on Thursday, Dec. 24, and will reopen the following Monday for a normal trading day. UK markets close at 12.30 p.m. London time on Thursday and will remain closed on Monday, Dec. 28, since Boxing Day, a market holiday falls on Saturday. Japan’s stock market will be closed on Wednesday, Dec. 23, for the Emperor’s Birthday but will observe normal trading hours on Dec. 24 and 25.
There’s much we are looking forward to bringing to you in 2016 - Don’t miss our Market Outlook for 2016, which you will be able to find on JFD Research website. In addition to the market forecasts for 2016, our Research team will announce the new webinars for 2016, where you can also find on the Research website. Videos, reports and much more will follow in 2016!
[B]Here’s to a happy and healthy 2016, and all the best from the JFD Research team!
May this Christmas bring you all the love and luck in the world! Merry Christmas and a Happy New Year!
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