At the week ahead the US will be publishing its highly anticipated foreign
trade report, after it had been delayed for almost a month due to the partial
government shutdown, with market forecasts pointing to a narrowing trade
deficit in November. Meanwhile, the ISM Non-Manufacturing PMI is likely to
decline in January to a six-month low; and factory orders are expected to
post a slight recovery in November after October’s biggest decline since July
2017. Elsewhere, interest rate decisions from the Bank of England and
Germany industrial production will also be in the spotlight.
Important figures for the US are: consumer credit, Q4 labor productivity,
IBD/TIPP Economic Optimism, and final Markit Services PMI will also be
In the UK, the Bank of England will meet to set monetary policy, with markets
anticipating no changes in borrowing costs as Brexit uncertainties remain
and as Prime Minister, Theresa May heads to Brussels to win concessions
from the EU on the Brexit withdrawal agreement.
In Europe, investors await the Eurozone producer inflation, retail trade data
and final Market Services PMI; Germany industrial output, factory orders, and