Week Ahead

In the last week of 2022 the focus will shift to stocks as there would be very few important economic releases. Investors are hoping that the stocks will stage the Santa Claus rally, bringing some respite to the markets. In the US, housing data and several regional PMI readings will take center stage. Also, Japan will release retail sales, industrial production, and unemployment rate while in South Korea, Spain, and Russia the focus will be on inflation rates.

The last week of the year will be a quiet one in the US, as markets are closed on Monday for the Christmas holiday and only a few economic releases are due. However, investors still hope a so-called Santa Claus rally which usually happens on the last five trading sessions of the year and the first two of the new year, could take place. On the data front, it will be interesting to follow pending home sales, the S&P/Case-Shiller and FHFA house prices, goods trade balance, wholesale inventories, the Dallas Fed and the Richmond Fed manufacturing and services index, and the Chicago PMI.

In Europe, the European Central Bank will be publishing its monetary indicators, while the UK will see the release of December’s house prices. Other important publications are the preliminary reading of consumer price inflation rates for Spain and Russia, as well as France’s unemployment data, Swiss KOF Leading indicators and business morale, and Turkey’s manufacturing confidence.

In Asia, investors keenly await BoJ Governor Kuroda’s speech and the central bank’s “Summary of Opinions” for insights on the central bank’s outlook after it unexpectedly increased its yield curve control threshold. Meanwhile, Japanese economic releases will include retail sales, industrial production, the unemployment rate, and housing starts. In India, the third quarter’s current account deficit is expected to surge to a record high as high energy costs and a weak rupee inflated goods imports. Elsewhere, South Korea will divulge inflation, and consumer and business confidence for December, while Thailand will publish November’s trade data.