New Year 2017 – With a Barrage of Economic Data

Life slowly returns to normal after the lull between Christmas and New Year. The upcoming week is set to be a holiday-shortened one, with UK and US markets closed on Monday and many Southern European markets likely to see low trading volumes on Friday, due to the feast day of the Epiphany. It is a disjointed start to the year, but things will slowly get back to the usual rhythm. PMI figures dominate the week, coming from the Eurozone, UK, China, US and Canada, and the economic schedule culminates in the first non-farm payrolls reading of 2017.

Tuesday is the day for the German unemployment data for December, expected to fall by 6,000 but the percentage rate holding at 6%. The UK manufacturing PMI will also be out, again for December, which is expected to fall to 53.1 from 53.40. On the other side of the globe, the US will issue its ISM manufacturing PMI, forecast to rise to 54.20 from 54.10. It will be interesting to have a look at the main currency crosses against their majors’ counterparts after the release of such data. Other data will follow throughout the week by similar referencing activities in the factory and services sectors all main geographies around the world.

Wednesday is the day for the Federal Reserve Minutes covering the December meeting, at which the committee voted to increase rates. These minutes may shed more light on the decision and potentially provide further information on the projected three rate increases in 2017. Following this at it is usual for the start of each month, is the monthly US non-farm payrolls report, due out on Friday, which will draw the most attention. Friday will also be the day for the latest Chinese official Foreign exchange reserve that may as well affect markets.

Corporate Updates

Corporate news has yet to return in full from its Christmas break, but trading updates will still be incoming from Next and Persimmon. The former should provide a useful indication of how retailers fared over Christmas, while the latter will be interesting given the recent surprise warning from fellow homebuilder Bovis. 

Last but not least: HAPPY NEW YEAR!!!

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt .The information, views and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.