Weekly Markets Diary – 02 December

Week Ahead

Last week Jerome Powell was able to boost confidence when he suggested that the Federal Reserve may be able to start slowing the pace of rate hikes. For this week we have the PPI inflation numbers on Friday, not quite as widely followed as the CPI numbers which are due out the following week, but still likely to dominate the trading sentiment for the week ahead.

Costco and Dollar General both fell over of 7% in recent days after both walked down expectations for the key retailing quarter ahead, signs that the US consumer is increasingly feeling the pinch. Will this set the tone for the wider retailing sector? We will have to wait for the new year to find out but the early data from Black Friday and cyber-Monday was only decent, with records highs yes, but only just, and failed to really excite the expectations.

Very few corporate earnings are due for the days ahead, so the focus looks set to remain on US inflation, the hoped for Fed slowdown, and ongoing signs on retail sentiment. With the major data point likely to be the US PPI on Friday.

‍

Trading Calendar

Monday 5th December

Major Companies Reporting:

US 500:

UK 100:

Germany 40:

Major Economic Data Due:

10:00 EZ October Retail Sales y/y -2.6% expected, -0.6% previous

‍

Tuesday 6th December

Major Companies Reporting:

US 500: AutoZone

UK 100: Ashtead

Germany 40:

Major Economic Data Due:

No Major Data Due

‍

Wednesday 7th December

Major Companies Reporting:

US 500: Brown-Forman

UK 100:

Germany 40:

Major Economic Data Due:

10:00 EZ Q3 revised GDP q/q 0.2% expected, 0.2% previous

15:00 CA Bank of Canada rate decision, 4.25% expected, 3.75% previous

‍

Thursday 8th December

Major Companies Reporting:

US 500:

UK 100: DS Smith

Germany 40:

Major Economic Data Due:

13:30 US Weekly Initial Jobless Claims, 225k previous

‍

Friday 9th December

Major Companies Reporting:

US 500:

UK 100:

Germany 40:

Major Economic Data Due:

13:30 US November PPI inflation y./y, 8% previous

‍