It would be another short holiday week. In the US, the most important release would be Fed meeting minutes followed by ISM Manufacturing PMI, construction spending, goods trade balance and wholesale inventories. Elsewhere, Markit Manufacturing PMI surveys will be in the spotlight, alongside UK monetary indicators and housing prices; and China NBS PMIs.
12/28/2019 5:16:37 PM
In the US, investors will be waiting for the FOMC minutes due Friday for further clarification on the next monetary policy steps. The Federal Reserve held the target range for its federal funds rate at 1.5-1.75 percent during its December meeting, and signaled there would be no changes in interest rates until at least 2021. Regarding the economic calendar, the ISM Manufacturing PMI is likely to point to another month of contraction in manufacturing activity during December; while construction spending is seen rebounding in November, following October's sharp decline. Other notable publications are pending home sales, Case-Shiller home prices, Chicago PMI, Dallas Fed Manufacturing Index, the advance estimates of goods trade balance and wholesale inventories, and the final reading of Markit Manufacturing PMI.
Other key data to watch for in America include Canada Markit Manufacturing PMI, Brazil trade balance, and Mexico business morale. The central bank of Mexico is also due to publish its monetary policy meeting minutes.
In the UK, a final reading of Markit Manufacturing PMI is expected to confirm the sector remained in negative territory; while a preliminary reading for Construction PMI should point to the softest rate of contraction in activity since May. The Bank of England will publish its monetary indicators while the UK Finance will release mortgage applications for November. December's Nationwide housing prices will also be in the spotlight.
Elsewhere in Europe, investors will keep an eye on final Markit Manufacturing PMI surveys for the Eurozone, Germany and France, while preliminary readings for Spain and Italy will also be followed, as well as inflation rates for Germany, Spain, France and Italy. Other key economic data include: Germany unemployment rate; Spain final Q3 GDP growth; Switzerland KOF leading indicators and Manufacturing PMI; and Turkey consumer price inflation and trade balance.
In China, the NBS will be publishing its Manufacturing and Non-Manufacturing PMIs, with forecasts pointing to weak factory activity growth during December, and a steep slowdown in service expansion. Meanwhile, the Caixin Manufacturing PMI is expected to remain close to a near three-year high reached in November. In South Korea, important releases include inflation, trade balance, business confidence, industrial production, retail sales, and Markit Manufacturing PMI.
Other highlights for the Asia-Pacific region include: Australia final CommBank Manufacturing PMI; India current account, infrastructure output and Markit Manufacturing PMI; Hong Kong trade balance and retail trade; Singapore Q4 GDP figures; Indonesia and Thailand inflation rates.
Stock markets across the US, Europe and Asia will be closed on Wednesday for New Year's Day, and will reopen on Thursday to start another calendar year. In addition, markets in Germany, Italy, Brazil and Japan will be closed on Tuesday while the UK trading ends early to celebrate New Year's Eve.