The big event next week, outside anything we don’t yet know about, will be the Fed statement and press conference on Wednesday night. A rate hike is still expected, but doubt has crept in these past couple of weeks.
The problem for Jay Powell is to not hike would be seen to be bowing to political pressure (Trump). More likely is the Fed continues to tone back the rhetoric such that three hikes next year are less of a given, which would still at least provide some comfort for Wall Street.
US date releases next week include housing sentiment and starts, PCE inflation, consumer sentiment and one more revision of the US September quarter GDP result.
The Bank of Japan and Bank of England will both hold policy meetings on Thursday, a day after the Fed decision.
In Australia, the minutes of the December RBA meeting are due on Tuesday and November jobs numbers on Thursday.
Thursday also sees the December quarter expiry of all ASX equity derivatives – SPI futures and options, index options and stock options. Volatility may prevail, particularly as next week will see market participation begin to thin.
Changes to the components of S&P/ASX indices, due to be announced today, will become effective on Friday.
ANZ Bank ((ANZ)), National Bank ((NAB)) and Orica ((ORI)) all hold AGMs on Wednesday followed by DuluxGroup ((DLX)) and Incitec Pivot ((IPL)) on Thursday.
While these events are no doubt worth noting, broking houses have already begun to wind down for the year. Research reports next week will be thin on the ground.
To that end, FNArena will also start winding down towards the Christmas break in terms of content provision, given lack of subject matter.
