So far equities doing the old ‘first day of the month’ trade. European equity markets continue to move higher despite the fears that 2017 will be a year full of political uncertainty. Some recent moderate improvements on European macroeconomic data give some optimism about European future in 2017.
The vast majority of investors have a bullish view for S&P 500, Eurostoxx , USD and US Treasury yields and inflation. There are high expectations that the developed economies will follow a less accommodative monetary policy
Every year these days’ investment banks make predictions about the way that markets will move during the New Year. 2016 show us that this is very difficult to happen as the most ‘’ unpredictable’’ events occurred finally with a magic way. There is always a magic way random and unexpected events to fool and surprise markets.
It seems that for 2017 traders and investors must focus on two events. Firstly on geopolitical and economic relations between U.S and China and secondly on European political uncertainty.
Daily Key points:
• China’s factory activity picked up more than expected
• Turkey Inflation At 1-Year High
• FTSE 100 kicks off 2017 with fresh record high
• French inflation climbs to highest since May 2014 at 0.8%
• Asian Shares Mostly Higher Amid Upbeat China Data
Daliy Economic calendar:
|Germany||German Prelim CPI m/m||High||0.1||0.4||Euro||16:00|
|France||French Prelim CPI m/m||High||0.0||0.2||Euro||10:45|
|Germany||German Unemployment Change||Medium||-5K||-5K||Euro||11:55|
|USA||ISM Manufacturing PMI||High||53.2||54||USD||18:00|