Weekly Markets Diary – 30 December

Written by

OvalX team

Published on

December 30, 2022

Week Ahead

The markets will wind up back into gear from next week. Still very little corporate data is due, although we do have Next updating on Thursday which could give an early indication on Christmas retail sales numbers.

Later in the week, we do have the US Non-farm payrolls which could give clues on how much the Fed is expected to ease the pace of rate hikes in 2023. Also on Friday, there is the Eurozone flash inflation which could also provide clues on the pace of ECB rate hikes ahead.

Q4 started with some growing confidence in equity markets that central banks may be able to ease rate hikes quicker than initially feared. This allowed equity indices to post some decent gains. However, towards the latter half of Q4 this early confidence has faded, leaving the likes of the Nasdaq 100 and Nikkei 225 erasing all of these early Q4 gains.

Marking one major question for equity markets in Q1 2023: are the failed bear market rallies in the Nasdaq and Nikkei the future for other equity indices, or are these an outlier?

Can buying momentum return in Q1 and keep the S&P 500 from posting comparable moves back to the Autumn lows? Due to the heavy volatility throughout 2022 and the continuing uncertainty over the recessionary fears for 2023, the market is likely to stay nervous until this situation becomes clearer, which could cause future volatile moves on key economic and corporate data emerging in the next few weeks.

Trading Calendar

Monday 2nd January

Market Holiday: UK, US & Europe

Major Companies Reporting:

US 500:

UK 100:

Germany 40:

Major Economic Data Due:

No Major Data Due

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Tuesday 3rd January

Major Companies Reporting: