What to expect in global markets this week
1pm looks to be the time when everything is happening this week.
For instance, at 1pm today, we get the December quarter GDP, plus December retail sales and industrial production data for China.
Economists are expecting GDP to have grown by 1.5% for the December quarter and 6.4% year-on-year.
The Bank of Japan is also updating us on its monetary policy deliberations at 1pm on Wednesday, and the World Economic Forum kicks off in Davos on Wednesday evening our time.
Of course, there are other big events happening (or not) at other times this week.
11:30 on Thursday brings the local employment report for December; economists have forecast a gain of 20,000 jobs and the unemployment rate to remain steady at 5.1%. Late on Thursday evening, the European Central Bank announces its monetary policy decision with no change expected.
China has revised its 2017 economic growth down to 6.8% from 6.9% — or down from CNY82.7 trillion (USD12.1 trillion) to CNY82.1 trillion (USD12 trillion). This may seem like small fry, but when you add on the zeros, it is meaningful.
The strong rally in equity markets on Friday has had the usual effect on bond yields; the US curve nudged higher by 5 basis points on the 2 year and 4 basis points on the 10 year narrowing the curve to 17 basis points.
Base metals all put in a good showing on Friday, with 3 month nickel up 2% ay USD11,820 and 3 month copper up by 1% at USD6,052; still a long way off the USD10,160 per tonne reached in late 2001. Oil pushed higher, too, closing US trading at USD53.97 a barrel, a rise of 3.1%.
Speaking of the US, Donald Trump has cancelled the American delegations trip due to the government shutdown.
British retail sales data for December was released on Friday evening and showed a decline of 0.9%. It suggests that shoppers did the bulk of their Christmas shopping in November which was up a solid 1.3% (revised). The British Retail Consortium declared December the “worst Christmas in a decade”.
Index futures are up by 43 points and the Australian Dollar is pretty steady at USD0.7165
S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.
Conflict of Interest Notice
S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.
The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.