Key U.S macro news while volatility drops – 22 dec 2016

Key U.S macro news while volatility drops – 22 dec 2016


More and more trading desks close for Christmas holidays and we expect volatility to drop even more despite some key U.S macroeconomic announcements during U.S morning hours.

Is more likely to see the global equity market to move lower in the next couple of days, since the Trump’s trade has given extraordinary returns for the past 40 days and there are questions rising about how easy it is for Trump to fulfill on his ambitiously fiscal policy plans.

One of the most major events that will move markets in 2017 will be the political developments in Europe, the French elections later in summer will create volatility. Traders should focus on how the anti – establishment parties will perform. We do not think that we will see radical changes in European monetary policy as Germany put barriers in this direction. We see high probabilities during the next year the 10 year French bonds to plunge despite that ECB continue to buy a lot.

Daily Key points:
• China – “Factories suffer huge losses from smog shutdown”
• EU’s Moscovici: EU countries need more expansionary fiscal policies
• Monte dei Paschi set for state bailout after private sector rescue fails
• Copper remains weak on oversupply worries, drop in Chinese imports
• UK consumer confidence improves in December
• British car production hits highest since 1999 in November

Daily Economic calendar:
Country Event Importance Previous Expectations Follow Times
Europe ECB Economic Bulletin Medium n/a n/a n/a 11:00
USA Core Durable Goods Orders m/m Medium 0.8 0.2 USD 15:30
USA Final GDP q/q Medium 3.2 3.3 USD 15:30
USA Durable Goods Orders m/m Medium 4.6 -4.9 USD 15:30
USA Personal Spending m/m Medium 0.3 0.4 USD 17:00