Weekly Keys: What is happening this week?
The S&P 500 continues to set new all-time highs along with the Dow Jones and causing a rebound in long term American yields.
Last week’s events
There is still no agreement between the UK and the EU on the trade relationship after 31 December, when the definitive separation will take place. From the macro side the most important were the UK and German PMIS, and in both cases there were no big surprises and they came around to expectations.
Also very much in the pipeline were the Manufacturing and Services ISM’s and although both were slightly below expectations, they continue to show more than healthy levels. The week closed with the important unemployment data and although the Payrolls fell far short of expectations (245k actual vs 469k forecast), the unemployment rate continued to fall to 6.7%.
The week ahead
The announcement of a new meeting between Boris Johnson and Ursula von der Leyen will mark the agenda of the Brexit, which after many months of quiet, seems to be the focus of this year’s closing. However, we should not lose sight of such important publications as the German ZEW economic sentiment index as well as the last ECB meeting of the year.
Quieter week in the US where the main data will focus on inflation with the release of the CPI on Thursday and the PPI on Friday both in November and expected growths of 0.1% and 0.2% in November.