Over the past week, we witnessed the impact Chinese markets can have across the globe. We saw indices fluctuate over the week, searching for direction as investors worried about the world’s second largest economy and what may lie ahead for it.
We won’t have too much time to relax this weekend as we end with Chinese data tonight/Saturday, depending on your time zone, and are back at our trading desks on Sundaywith more economic prints from China.
Economists expect Chinese aggregate financing to total 1150 billion, up from November’s 1020 billion. Going down the list, new yuan loans are expected to drop to 700 billion versus November’s 708.9 billion. Keep an eye on those events as they will likely define the trading for the US and Europe. Any data reading that significantly strays from the forecast could spell trouble.
Wednesday is another day to watch your positions, as we have Australian unemployment on tap. We are expecting a slight bump up to 5.9% from November’s 5.8%.
On Thursday, expect all the light to be on the Bank of England, as the BoE will be mulling over the nation’s interest rates. Given the recent slew of English data, we expect the interest rate to hold steady at 0.5%. More importantly, watch the language and later read the meeting minutes, as that will set expectations for the course of UK’s monetary policy.
We end the week with more data for the United States with advance retail sales and the University of Michigan Consumer Confidence survey. Analysts are forecasting advance retail sales to hold at the same level and consumer confidence to rise on the back of the recent positive labor market news.
Guest Post by Donald Levit, strategist at www.EconomicCalendar.com
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