As the United States and other Western countries celebrate Christmas for much of this week, it will be rather quiet in terms of data and scheduled developments in financial markets.
On Monday, markets will open as usual from Asia to Europe and Americas. However, on Christmas Eve Tuesday, UK markets will close early at 12:30 GMT and the US one will close early at 13:00 EST.
The Christmas holiday is on Wednesday, December 25th. The following day, the Boxing, is also holiday in the Western world. Markets will re-open on Friday but no major event or data release is set on that day.
In the UK, Brexit and in the US President Donald Trump’s impeachment will be relevant topics of continued discussion.
Although not a holiday in most Asian countries, the holiday spirit will be prevalent in Japan and China.
Nonetheless, markets in Tokyo, Shanghai, and Seoul will remain open as investors will be watching Japanese central bank (BOJ) monetary policy minutes and a speech by its governor Haruhiko Kuroda.
In addition, we will be following remarks by Chinese officials about the ongoing trade war with the United States and the Phase-1 agreement, which the two sides claim to have reached.
Brace for a North Korean Surprise
A potentially market-moving development could come from Asia as possible as North Korea threatens the US with a Christmas surprise. The Pyongyang regime made clear in the past weeks that the Trump administration must come up with a new offer to restart denuclearization talks that had collapsed earlier in Sweden.
Citing US military and intelligence sources watching North Korea hourly, the New York Times reported on Sunday that Pyongyang was preparing for an imminent intercontinental ballistic missile test that could reach the US coast.
Monday: US Core Durable Goods Orders, Canada GDP, US New Home Sales, Japan Monetary Policy Meeting Minutes
Tuesday: Christmas Eve UK early close at 12:30, US early close at 13:00, Australia early close at 14:10, API Weekly Crude Oil Stock
Wednesday: Christmas Holiday, US Initial Jobless Claims
Thursday: Boxing Day, Bank of Japan Governor Kuroda Speaks,
Japan Industrial Production, Japan Retail Sales, Tokyo Core CPI
Friday: Eurozone ECB Economic Bulletin, US Crude Oil Inventories, US Baker Hughes Oil Rig Count