Wall Street will have a busy week of economic data releases and a handful of important earnings. Investors will pay close attention to Nike’s results after the bell on Tuesday. Nike could provide insight into how strong the Chinese consumer is and provide one of the latest updates for holiday spending. Other key earnings include General Mills, Carmax, Micron, and FedEx.
Housing economic indicators will be plentiful this week, with weakness expected across building permits, housing starts, existing home sales, and new home sales. Final Q3 GDP is expected to remain at 2.9% and the GPD price index should hold steady at 4.3%. Personal income and spending data should soften but still remain positive, while consumer confidence is expected to slightly improve.
EU
As will be the case in many other countries next week, there isn’t too much of note to come from the eurozone next week. The ECB unofficially brought the curtain down on 2022 for the bloc with its 0.5% rate hike, while signaling more will follow. There are a few data points scheduled but nothing stands out that could be a game-changer.
UK
Strike action is likely to dominate UK headlines over the festive period, with little else to talk about beyond the cost-of-living crisis. The BoE displayed two things with its 0.5% rate hike in December; it currently remains committed to defeating high inflation whatever the cost and there is no unified view on the correct course of action next year. The economy is already likely in recession and that will become clearer in the first quarter, at which point rate hikes will be harder to justify if inflation is falling. That is the focus now in the absence of any notable events next week, beyond a revised third-quarter GDP reading.
Russia
The war in Ukraine and whether either side will make a move over the next couple of weeks will be the key focus as far as Russia is concerned. The central bank has paused its rate-cutting cycle and beyond PPI, it’s very thin on the data front.
There is nothing of note on the economic calendar next week. President Ramaphosa is seemingly safe for now, temporarily eradicating political risk from the rand, assuming he is re-elected party leader this weekend, as expected.
Turkey
The CBRT previously indicated that it will pause its easing cycle which should make next week’s rate decision fairly straightforward and uneventful. If we weren’t talking about the CBRT, I would say that with more confidence. As it is, nothing would surprise me, barring a rate hike of course.
Switzerland
The SNB hiked rates as expected to 1% and could go further in the future. Next week though looks a little flat, with the quarterly bulletin the only moderately interesting release.
China’s reopening is seeing a surge in cases that could test some healthcare capacity. Any announcements on major changes to policies might be delayed if this surge shows no signs of peaking.
The focus will also fall on rates. Both the 1-year and 5-year Loan Prime Rates are expected to remain steady at 3.65% and 4.30% respectively. Efforts are ongoing to stabilize the property sector and commercial banks could lower their quotes on five-year loan prime rates by 10 basis points.
India
No major data is scheduled for release.
Australia & New Zealand
The minutes of the December 6th RBA policy decision will be dissected for any further clues to when they will finish raising rates. RBA Governor Philip Lowe said that rate rises are “not on a pre-set course”.
Economic data will be plentiful in New Zealand. Both Trade data and ANZ business confidence will be released on Tuesday. On Wednesday, credit card spending data will be released.
The BoJ is expected to keep rates steady and maintain their dovish guidance. Policymakers want to see how bad global growth gets before removing stimulus. Traders will look for any hints on whether the BoJ will review its policy in the near future. Attention will also be on whether core inflation continues to accelerate higher.
Singapore
On Friday, the release of Singapore’s industrial production and CPI data will closely be watched. Industrial production in November is expected to further weaken, while inflation is expected to slightly ease.
Economic Calendar
Saturday, Dec. 17
Economic Events
- The Central Economic Work Conference, an annual economic planning meeting of Chinese leaders concludes with an expected growth target to be discussed
- South Africa’s governing party, the African National Congress, meets in Johannesburg for its elective conference
- Ireland’s parliament is expected to vote in Leo Varadkar as Taoiseach, or prime minister
Sunday, Dec. 18
Events
- World Cup final in Qatar
Monday, Dec. 19
Economic Data/Events
- US House committee investigating January 6th insurrection concludes
- Germany IFO business climate
- New Zealand consumer confidence, performance services index
- ECB Vice President de Guindos addresses the Nuevo Economía Forum in Madrid
- EU energy ministers meet in Brussels
- Russian Defense Minister Shoigu travels to India for meetings with his Indian counterpart and other officials
Tuesday, Dec. 20
Economic Data/Events
- US housing starts
- Canada retail sales
- China loan prime rates
- Eurozone consumer confidence
- Japan rate decision: Expected to hold rates steady
- Mexico international reserves
- New Zealand trade, business confidence
- Taiwan export orders
- Thailand car sales
- ECB Governing Council member Kazimir presents updated economic forecasts for Slovakia in Bratislava
- UK PM Sunak appears before Parliament’s Liaison Committee to discuss foreign affairs and the economy
- Nike earnings
- The Reserve Bank of Australia releases minutes from its December interest rate meeting
Wednesday, Dec. 21
Economic Data/Events
- US existing home sales, US Conference Board consumer confidence
- Australia leading index
- Canada CPI
- Hong Kong BoP
- Japan machine tool orders
- New Zealand credit card spending, consumer confidence
- South Korea trade 20 days
- EIA crude oil inventory report
- RBI Gov Das to speak at a Business Standard event
Thursday, Dec. 22
Economic Data/Events
- US Q3 final GDP, initial jobless claims, US Conference Board leading index
- China Swift global payments
- Japan leading index
- Thailand trade
- Turkey rate decision: May keep rates steady
- UK GDP
Friday, Dec. 23
Economic Data/Events
- US consumer income, new home sales, durable goods, University of Michigan consumer sentiment
- US bond markets close at 2pm
- Japan CPI, department store sales
- Mexico trade
- Singapore CPI, industrial production
- Spain GDP
- Taiwan industrial production, money supply
- Thailand forward contracts, foreign reserves
- The BOJ releases minutes of its October policy meeting
