Sydney harbour celebrations - 2019

It is a shorter week ahead due to the new year’s eve celebrations and holidays across the world. Markets will be closed or see an early close in most countries on Tuesday and everywhere on Wednesday as people welcome the year 2020.

No jobs data

No major data is set for the week. December’s US non-farm job additions report will instead be postponed for the next Friday to January 10.

Fed minutes

On Thursday, the US Federal Reserve will come into focus. The central bank’s Federal Open Market Committee will be releasing minutes from its December meeting in which it kept the interest rates on hold for the first time since the preceding three cuts over the autumn and summer.

Concerning the near-term outlook, the minutes are most likely to be line with Chairman Jerome Powell’s messaging that monetary policy was in a good place for an economy in good shape. Investors will be watching for differences between FOMC members’ opinions regarding the rates and inflationary pace.

NK tensions remain

North Korea may keep certain segments of the finance world tiptoeing as its leader Kim Jong-un’s threat of a “Christmas gift” to the US still stands despite an erroneous report last week by the Japanese public broadcaster NHK that Pyongyang launched a missile.

US President Donald Trump’s national security adviser Robert O’Brien told ABC’s “This Week” on Sunday that Washington was monitoring North Korea’s actions closely, adding that it found the situation “concerning”

“We’ll reserve judgment but the United States will take action as we do in these situations. If Kim Jong Un takes that approach we’ll be extraordinarily disappointed and we’ll demonstrate that disappointment,” O’Brien said.

Before the market open

With the Sino-US trade war still awaiting presidential signatures to seal the so-called Phase-1 deal, China’s commerce ministry said on Sunday that Beijing remained in close touch with Washington on signing the deal, explaining that both sides were still going through necessary procedures.

Economic calendar

Monday: US Pending Home Sales, Germany Retail Sales

Tuesday: China Manufacturing PMI, US CB Consumer Confidence

Wednesday: New Year’s Day

Thursday: China Caixin Manufacturing PMI, Germany Manufacturing PMI, UK Manufacturing PMI, Eurozone Manufacturing PMI, US FOMC Meeting Minutes

Friday: German Unemployment Change, Germany Unemployment Rate, Germany CPI, UK Construction PMI, US ISM Manufacturing PMI

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