Investors are now focused as the Bank of England (BOE) Governor Mark Carney headlines the release schedule with a speech at 13:15 GMT. Other market drivers do traders need to pay attention to are mentioned here with 20 December Market moving fundamental events.
20 December, HotForex – Asian stock markets traded narrowly mixed. Japanese markets managed to pick up as banks benefited from the sharp rise in Treasury yields yesterday. The U.S. tax vote failed to spark a firework on markets, but after the sharp uptick in long interest rates across major markets yesterday and in Asia overnight hopes of a recovering in earnings for financial stocks have been underpinning equities and U.S. stock futures are also up.
European Market Outlook
UK100 futures meanwhile are in the red, however. Treasury yields meanwhile dipped slightly from Tuesday’s highs in overnight trade and Bund futures moved up from lows. Today’s calendar has seen German PPI inflation down two ticks at 0.1% as well as Eurozone current account and BoP data and the U.K. CBI distributive trade survey. Sweden’s Riksbank meanwhile is widely expected to keep the repo rate unchanged at -0.50% today.
US Tax Bill
The US Senate has approved the most sweeping overhaul of the US tax system in more than three decades.The House of Representatives earlier approved the bill comfortably. Republicans have majorities in both houses of Congress. For final approval, the legislation must go back to the House on today for a procedural issue.
If it passes, as expected, it will be President Donald Trump’s first major legislative triumph. Critics say the package is a deficit-bloating giveaway to the super-rich.
U.S. Data Reports
Revealed a solid November housing starts report that lifted already encouraging prospects for the Q4-Q1 housing sector, alongside a big unexpected drop in the Q3 current account deficit.
For housing, November strength was skewed toward single-family starts and activity in the disaster-riddled south and west, and the 3.3% headline starts rise included a solid 1.0% rise in starts under construction after upward revisions that lifted our Q4 real residential construction growth estimate to 10% from 9%, though we still expect a Q4 GDP growth rate of 2.5% after a Q3 growth boost to 3.4% from 3.3%.
For the current account, the deficit fell in Q3 to just $100.6 bln from $124.4 (was $123.1) bln, thanks to a big rise in the surplus on primary income and a big drop in the secondary deficit, alongside an expected narrowing in the goods deficit and a slight widening in the service surplus.
Kashkari Repeated Hike Rates Warnings
Fed dovish dissenter Kashkari repeated his warnings from Monday in the wake of the FOMC decision that there remains slack in the labour market and the Fed should not raise rates. He also noted in a Q&A session that local regulations are driving up the cost of housing and hurting affordable housing.
Main Macro 20 December Market Moving Fundamental Events
- BOE Carney Speech – The Governor is due to testify on the November Financial Stability Report (FSR) before the UK’s Treasury Select Committee. Scheduled for a start at 13:15 GMT.
- New Zealand GDP – The December Quarter GDP figure is expected to show a decline from 0.8% in September down to 0.6%. Data is reported at 21:45 GMT and is the first GDP posting since the new government was elected and the new head of the RBNZ was announced.
This article about 20 December Market Moving Fundamental Events was written by Andria Pichidi, Market Analyst at HotForex. The provided article is a general marketing communication for information purposes only. It does not constitute an independent investment research. Nothing in this communication contains an investment advice or an investment recommendation. It also does not contain a solicitation for the purpose of buying or selling of any financial instrument.
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