IronFX Daily Commentary by Sakis Paraskevov | 06/01/2016
January 6, 2016 10:03 am
Main points for Today :
• China to keep share sales ban in effect • China will keep in effect its ban on share sales by listed companies’ major shareholders until the government publishes new rules on such share disposals. • China’s securities regulator said that it was studying new rules to restrict share sales by listed companies’ major shareholders to ensure an orderly exit. • Chinese stock markets have stabilized a little with Shanghai Composite up around 1% in early European trading. • The main event of the day: Fed’s December meeting minutes • At this meeting, the committee decided unanimously to raise interest rates by 25bps for the first time in almost a decade. • Fed officials repeatedly stated that the focus should be on the pace of future rate hikes rather than the initial hike itself. • We will closely monitor the minutes for more insights about the members view on what other factors, besides domestic data, might affect the pace of the tightening cycle. An upbeat tone in the minutes could keep USD supported. • Today: • France, Germany & Eurozone: Final service-sector PMIs for December. As usual, the final forecasts are the same as the initial estimates, thus the market reaction could be muted. • Eurozone: PPI for December. Not major market mover. • UK: Service-sector PMI for December. Bearing in mind the mixed results of the manufacturing and construction PMIs for the same month, the services index could provide more evidence on whether the economy has lost momentum in Q4, especially as services account for the vast majority of UK’s GDP. This could ease some of the downward pressure on GBP. • US: ADP employment report for December is expected to show that the private sector gained 192k jobs, fewer than it did in the previous month where the print hit 217k. The ISM non-manufacturing PMI and the final Markit service-sector PMI, both for December are coming out. Trade balance for November, as well as the factory orders for the same month are also due to be released. • Canada: Trade balance for November.
Main points for Today :
• China to keep share sales ban in effect
• China will keep in effect its ban on share sales by listed companies’ major shareholders until the government publishes new rules on such share disposals.
• China’s securities regulator said that it was studying new rules to restrict share sales by listed companies’ major shareholders to ensure an orderly exit.
• Chinese stock markets have stabilized a little with Shanghai Composite up around 1% in early European trading.
• The main event of the day: Fed’s December meeting minutes
• At this meeting, the committee decided unanimously to raise interest rates by 25bps for the first time in almost a decade.
• Fed officials repeatedly stated that the focus should be on the pace of future rate hikes rather than the initial hike itself.
• We will closely monitor the minutes for more insights about the members view on what other factors, besides domestic data, might affect the pace of the tightening cycle. An upbeat tone in the minutes could keep USD supported.
• Today:
• France, Germany & Eurozone: Final service-sector PMIs for December. As usual, the final forecasts are the same as the initial estimates, thus the market reaction could be muted.
• Eurozone: PPI for December. Not major market mover.
• UK: Service-sector PMI for December. Bearing in mind the mixed results of the manufacturing and construction PMIs for the same month, the services index could provide more evidence on whether the economy has lost momentum in Q4, especially as services account for the vast majority of UK’s GDP. This could ease some of the downward pressure on GBP.
• US: ADP employment report for December is expected to show that the private sector gained 192k jobs, fewer than it did in the previous month where the print hit 217k. The ISM non-manufacturing PMI and the final Markit service-sector PMI, both for December are coming out. Trade balance for November, as well as the factory orders for the same month are also due to be released.
• Canada: Trade balance for November.
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