Trading volumes are expected to remain light this week, limited liquidity continues, volatility increases.
Financial markets on Friday focus on the minutes of the Fed’s December meeting, for more hints about monetary policy.
On the data front, the US Manufacturing and Consumer Confidence Index is released from the US, while investors are looking for more evidence about the strength of the economy.
While in China, we await manufacturing sector data, as concerns persist about the health of the world’s largest economy.
And for next week, Investing.com has brought you the top 5 most recent economic calendar, expected to affect the markets.
1. International markets celebrate the new year
Markets in Canada, Europe, the United Kingdom, Australia, New Zealand, Japan and the United States remain closed on Wednesday to celebrate New Year’s Day.
Investors are taking advantage of these days the St. Rally, which has put Wall Street on record.
During the last five trading days of this year, we saw the S&P 500 record 1.3% higher on average, which has not happened since the 1950s, according to Stock Traders Almanac.
2.Federal Meeting Minutes
The minutes of the December Fed meeting will be released on Friday at 21:00 Mecca Time.
The US central bank kept interest rates steady after its December 11 meeting, in an expected decision, and indicated that borrowing spending will remain unchanged for some time.
The new economic forecasts indicate that 13 out of 17 members of the FOMC committee do not see any change in interest rates until 2021, which eliminated any possibility of a rate hike in the near future.
3. Manufacturing PMI data
The Institute of Supply Management is to publish its manufacturing PMI survey for December on Friday at 18:00 Mecca time, as investors search for more evidence about the strength of the sector, which has been hit hard by the trade conflict between the United States and China.
The data outlook also shows a slight improvement in reading to 49.0, up from 48.1 in October.
A reading above 50.0 is an indication of expansion, while a reading below 50.0 is an indication of economic contraction.
We believe that the PMI is a good sign of the economic situation, and analysts prefer it to determine the level of gross domestic product, which may be affected by weak seasonal adjustments, and is subject to reviews.
4. American Consumer Confidence Index
In addition to manufacturing data, we see December Consumer Confidence updates at 18:00 Mecca Time on Tuesday.
The reading indicates 128.2, an improvement from 125.5 for October.
If confirmed reading, it will be the best in 3 months.
5. Chinese manufacturing survey
The manufacturing sector activity index for the month of December is issued by the Chinese Supply and Procurement Federation, at 4:00 Mecca time on Tuesday, amid expectations for an increase to 50.1 from the previous reading in October at 50.2.
While the Caixin manufacturing index is expected to decline 0.1, to 51.7. The official reading will be issued at 4:45 pm Mecca time, and the index will measure the reading for SMEs.
Under pressure from domestic demand and tariffs from the US, the Chinese economy slipped to 3-decade declines during the third quarter, which pressed Beijing to put in place incentives to avoid a severe slowdown.