The new week is unlikely to become something remarkable for capital markets, as long as no new drivers or catalysts are going to appear, but investors are not going to be bored either.
The new week of January looks quite usual. We have the statistics, politics, as well as a few monetary decisions. It seems that global economies and capital markets are working full-scale after the Christmas and New Year holidays.
The second half of December is the time of cleaning up the current affairs and forecasting the coming year. This week, central banks' sessions are coming to an end, but statistics will remain abundant. The markets will have no time to be bored.
This week is going to be full of events important for the stock and capital markets. It is rare for the sessions of the Fed and the ECB to follow one the other but this is our case. The tension is growing. In these circumstances, the volatility in trades may grow, so caution is necessary more than ever.
The beginning of December on the markets will be saturated with general economic and political events, but investors are still more hopeful about the news from the US and China than for other catalysts.
The discussions of Brexit and the reactions of the pound have long been most vivid. The problem seemed on the verge of solving but alas, the decision is postponed again. The pound is nervous because of Brexit complications, and its perspectives are directly connected to the upcoming end of the drama.
This week is promising to be rather active for capital markets. We are expecting the statistics, the sessions of Central Banks and watching the Brexit soap opera.
Investors have long become used to the non-stop mighty flow of news, flooding the market. This week is no exception; however, the list of the planned news at the moment looks pretty neutral.
The beginning of October was turbulent, so this week investors must be happy if there will be fewer reasons to increase the volatility. However, there are enough reasons for movements in the macroeconomic calendar, as well as in the list of foreign policy events.
The end of September and the beginning of October are not going to be too stressful in terms of the news: planned events able to influence the key assets are rather few, while the macroeconomic statistics are abundant.