NEW YORK, N.Y. – Trading volumes in the market are expected to stay light in the week ahead because of the New Year’s holiday, increasing volatility, and minimizing the liquidity in the market.
Market focus, particularly in global finance, will largely be on the December policy meeting minutes of the Federal Reserve, which is scheduled on Friday. The meeting will further provide hints as to what the future will look like in terms of monetary policy.
Further, the market will also await the data release and reports of the US regarding consumer confidence and the country’s manufacturing activity. The numbers from the report will wave further clues in regards to the economy’s strength.
Meanwhile, market players in China have shifted focus towards the upcoming data from the country regarding its manufacturing sector, amid the increasing anxiousness and concerns about the economic health of the second world’s largest economy.
The coming week will also be littered with the biggest events in the economy, which would most likely affect the global market.
On Wednesday will be a holiday in observance for the New Year’s Day and most stock markets will remain closed, including the US, UK, Europe, Canada, Switzerland, New Zealand, Australia, and Japan. This period from the last couple of days of the year until a couple of days in the coming year marks the Santa Clause rally, which has given Wall Street stocks a boost for the short term, based on history.
For the Santa Clause rally period, which includes the last five trading sessions in 2019 and the first two trading sessions in 2020, the S&P 500 index has already recorded a 1.3% increase since 1950.
Meanwhile, on Friday, the Federal Reserve is also scheduled to publish minutes from its policy meeting in December at around 2:00 PM, eastern time.
Following its recent meeting on December 11, the central bank has decided to keep the interest rates unchanged, which was a widely-anticipated decision.
The ISM Manufacturing PMI for December is also scheduled for release early on Friday. Based on forecasts, the PMI data is expected to show a modest improvement since the numbers in October.
Aside from the manufacturing data, Tuesday is also set for the Conference Board release of the update on December’s consumer confidence in the US, which is expected to show an improved reading since October.
Around noon on Tuesday, the China Federation of Logistics and Purchasing is also scheduled to publish its December data on the activity of the country’s manufacturing sector.
Overall, the coming week will be filled with market-altering releases.