Investing quantities in Asia trailed off to near a few days as traders clean up shop prior to subsequent week’s Lunar New Year holiday in China. Provided the big quantity of position closings, it appears as although western investors take this signal also and a little danger off the desk prior to the finish of today’s investing time.
We will, however, see some significant ig index economic data, so if these numbers do surprise markets, the lower volumes to lead to increases in volatility. In terms of economic earnings reports, the big number today will come from General Electric and this will likely get the majority of the market’s attention as there will be no European bond auctions to help give some direction in trading and in the Euro.
Yesterday, the HSBC manufacturing report (which generally differs from the official numbers reported by the government) showed a slight rise in productivity to 48.8 (after printing 48.7 for the previous month) but even with this higher reading, the print is still indicative of contraction and shows that this year’s economic conditions are seeping into all sections of the globe. The reaction today, however, was relatively muted, as the lower trading volumes did little to push prices in equity markets.
Looking ahead, the key event risks will come with the earnings report from General Electronics and the United State Existing Home Sales figures, which were expected to show a strong rally into the end of 2011. Part of the rationale for this is that Pending Home Sales (which provide earlier data for sales of existing homes) are seen as a leading indicator for the Existing Home Sales report, typically by one to two months. Pending Home Sales have risen more than 13 percent in the last quarter so there is a clear possibility that today’s Housing data will surprise to the upside. Currently, the consensus estimate is calling for a rise of 5.2 percent for the month of December (to a total figure of 4.65 million unit sales). An increase of 4 percent was seen during the month of November.
We will also have data today out of the UK and Canada, with Retail Sales and Inflation figures scheduled for release. Retail Sales in the United Kingdom are expected to show an increase of 0.7 percent while Canadian consumer prices are expected to show declines. While this market expectation for United Kingdom Retail Sales seems weak, it will likely still be viewed as encouraging, given the sharp from that was seen in November. Canadian consumer prices are expected to have dropped 0.2 percent for the month, which would bring the yearly reading down to 2.7 percent, and reduce market expectations for additional interest rate increases this year.
We will, however, see some significant ig index economic data, so if these numbers do surprise markets, the lower volumes to lead to increases in volatility. In terms of economic earnings reports, the big number today will come from General Electric and this will likely get the majority of the market’s attention as there will be no European bond auctions to help give some direction in trading and in the Euro.
Yesterday, the HSBC manufacturing report (which generally differs from the official numbers reported by the government) showed a slight rise in productivity to 48.8 (after printing 48.7 for the previous month) but even with this higher reading, the print is still indicative of contraction and shows that this year’s economic conditions are seeping into all sections of the globe. The reaction today, however, was relatively muted, as the lower trading volumes did little to push prices in equity markets.
Looking ahead, the key event risks will come with the earnings report from General Electronics and the United State Existing Home Sales figures, which were expected to show a strong rally into the end of 2011. Part of the rationale for this is that Pending Home Sales (which provide earlier data for sales of existing homes) are seen as a leading indicator for the Existing Home Sales report, typically by one to two months. Pending Home Sales have risen more than 13 percent in the last quarter so there is a clear possibility that today’s Housing data will surprise to the upside. Currently, the consensus estimate is calling for a rise of 5.2 percent for the month of December (to a total figure of 4.65 million unit sales). An increase of 4 percent was seen during the month of November.
We will also have data today out of the UK and Canada, with Retail Sales and Inflation figures scheduled for release. Retail Sales in the United Kingdom are expected to show an increase of 0.7 percent while Canadian consumer prices are expected to show declines. While this market expectation for United Kingdom Retail Sales seems weak, it will likely still be viewed as encouraging, given the sharp from that was seen in November. Canadian consumer prices are expected to have dropped 0.2 percent for the month, which would bring the yearly reading down to 2.7 percent, and reduce market expectations for additional interest rate increases this year.
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