Prepare for the last full week of trading before the holidays, as events head for more excitement. Despite the announcement of the first phase of the trade agreement between China and the United States, the atmosphere is still murky. The Conservatives also achieved an explicit majority, and now the Brexit Agreement will pass without any hindrance, but the BoE announcement will give the markets a clearer view. This week includes a number of speeches and meetings with federal officials, and we know the vision about the American economy and the euro zone economy. Here is the most important thing to know for the beginning of the week.
1.The commercial agreement with his rolling round continues
China said on Sunday that it would not impose more tariffs on a number of American goods, and was scheduled to impose tariffs on December 15, after the world’s two largest economies agreed on the first stage of the trade agreement on Friday.
Markets moved violently in response to news, rumors and leaks about the trade agreement, which would reduce customs duties between the two countries. Thus, China will return to buy more American agricultural products. However, neither side has announced more details about the volume of purchases that Beijing agreed to purchase.
While US President Donald Trump announced the start of talks on the second stage of the agreement, Beijing made it clear that the transition to the second stage, depends on the implementation of the terms of the first stage.
2. Is the Brexit Cloud clears?
British Prime Minister Boris Johnson scored an overwhelming electoral victory, paving the way for Britain to leave the European Union on January 31. Actions can begin as soon as Parliament opens with the Queen’s speech on Thursday. The Queen’s speech is an indication of all laws the government plans to implement next year.
On Sunday, Michael Goff said that the government’s most important priority is to leave the European Union on January 31, and secure a trade agreement with the union by the end of next year.
On Tuesday, we await the first appearance of the Bank of England after the elections. Investors are watching for any shifts in opinions on: inflation, the British economy, and the future interest rates in 2020.
3. The Fed speaks
Traders are looking into the comments of many Fed officials in the coming days, after the US central bank voted unanimously to keep interest rates steady at the same levels last week. They hinted that rates will remain at the same levels until 2020. Federal Reserve Chairman Jerome Powell said the bank’s view remains favorable to the economy.
And we are waiting for:
Tuesday: New York Federal President John Williams, Boston, Eric Rosengren, and Dallas, Robert Kaplan.
Wednesday: From Chicago, Charles Evans.
4. American economic data
On the economic calendar, we see industrial production update, housing, consumer sentiment, personal income, spending, and another glimpse into the GDP growth in the third quarter.
“The prevailing narrative about the recession continues to industrialize due to the uncertainty of trade wars, weak global demand and a strong dollar, despite the return of about 50,000 GM workers, after the strike ended, resulting in a recovery in industrial production,” analysts say. . “
5. Can Germany avoid recession in the fourth quarter?
The first evidence we get is: Advanced PMI reading for November, released on Monday.
There are also surveys of economic activity, which is one of the criteria indicating the health of the economy, and comes after the Citi index, which showed that the euro zone economy data is superior to expectations, at the fastest pace since February 2018. The latest surprises came from the rise of German exports by 1.2% for the month of October, exceeding all expectations .
Hopes rose that private consumption and exports helped Germany cohesion and not stagnate. PMI data for the past month showed that the manufacturing sector remained in a strong decline.
At the local level:
Tadawul announced the extension of the closing auction period for Saudi Aramco (SE: 2222) to 20 minutes, instead of 10 minutes. The trading period on the closing price will be extended to 20 minutes.
So, the closing auction period starts at 15:00 Mecca time, and ends at 15:20. While trading on the closing price continues from 15:20 Mecca time, to 15:40.
Please note that these changes only take place on Tuesday, December 17th.
The extension comes in light of Saudi Aramco’s (SE: 2222) accession to the MSCI International Index for Emerging Markets. The shares are listed on Wednesday, December 18th, and the price will be at Tuesday’s closing price.
The weight of Aramco (SE: 2222) is estimated at 0.16%, from the Emerging Markets Index.
On Sunday, we saw the implementation of 5 special deals on Aramco (SE: 2222). Transactions took place at 203.7 thousand price, at the price of 36.80 messages per share.
The stock closed Sunday’s trading at 37.40 riyals per share, an increase of 1.63%.