This week should be an interesting one, as we will open the first trading day of 2020 on Thursday, with the markets being closed on January 1st. This is where we can say that we are entering the ’20-ies again, which will be full of new technological breakthroughs, economic ups and downs and maybe of something else, but we will just have to wait and see. The economic calendar for this week is fairly busy, despite the early close of a few indices on the 31st and a full shutdown on January 1st. Manufacturing PMIs will be delivered by some major economies and investors will wait for the FOMC meeting minutes.
On Monday, we will have a relatively quiet European morning. But later in the day we will be getting the US retail inventories excluding Autos, together with the Chicago PMI number. The later is expected to have risen from 46.3 to 48.0. Although this would be an improvement, still, anything below 50 shows that the sector is in contraction. The Chicago PMI can be helpful in trying to estimate the ISM manufacturing PMI number, which is released at the end of this week and since August has been in contraction.
Another economic indicator from the US that we will keep an eye on is in regards to the pending home sales for November, where the number is forecasted to jump back into positive territory. The expectation is for it to...
Read the full financial markets weekly outlook on JFD Research.