Despite being the last full trading week before the holidays don’t expect it to be a quiet one due to some keyannouncements. Here are 5 things you need to know:
1. Federal Open Market Committee (FOMC) meeting
Wednesday afternoon’s FOMC policy statement will likely be the most watch event this week. All eyes, and ears, will be focused on any clues in the wording as to the timing of any potential interest rate hikes.
2. Slumping oil prices
Canadian provincial finance ministers meet in Ottawa this week. Saskatchewan’s finance minister Mr. Ken Krawetz suggests that the global plunge in oil prices threatens to erode public finances in several oil-rich provinces as well as the federal government’s bottom line. According to Krawetz, for Saskatchewan, every dollar the oil price drops, for a period of 365 days, it means $20 million are kept from the province’s bank account.In the U.S., falling oil prices are already shelving some new shale oil projects, which could eventually impact future jobs growth.
3.Housing Starts and Building Permits data
Are expected before Tuesday’s open. The figures are usually good earlier indicators of future U.S. economic growth.
4. The Eurozone Purchasing Managers Index (PMI) and Consumer Price Index (CPI) figures.
Europe PMI date could provide some clues ashow well the global economy is doing. CPI numbers on Wednesday, however, are not expected to show signs of a pick-up in inflation, especially given the current weakness in oil prices.
5. Japanese Monetary policy decision
The Bank of Japan is set to make yet another crucial decision in relation to its monetary policy on Friday. The decision will most likely follow a more dovish stance than what we have seen the recent months. Recently, the decision to raise asset purchases from 50-80 million yen was a big surprise that led to major selling of the currency in the FX markets.
And finally, our Analysts are watching:
Notable earnings releases this week: Triangle Petroleum Corporation (NYSE: TPLM) on Monday, AutoZone Inc. (NYSE: AZO) on Tuesday, Sunridge Gold Corp (TSXV: SGC) on Wednesday, Vast Exploration (TSXV: VST) on Thursday, and Oyster Oil & Gas Ltd. (TSXV: OY) on Friday.
