Policy announcements may outweigh fundamental economic data this week
WEEKLY MARKET COMMENTARY |
As investors look to close their books for 2015, the major market-moving event this week will likely be the Thursday European Central Bank (ECB) meeting. Investors have priced in an increase in the quantity and duration of the central bank’s asset purchase program. It would not be surprising to see the ECB reduce its discount rate even further (it’s already negative) to spur spending amid deflationary risks.
Also happening this week is a climate conference in Paris, the much-anticipated Organization of the Petroleum Exporting Countries meeting, a speech by U.S. Federal Reserve Chair Janet Yellen and a press conference by Bank of England Governor Mark Carney.
Among economic data, the key data point this week will be the November jobs report. The Federal Reserve will send out eight different central bankers to discuss the economic outlook and prepare the public and investor for a probable rate hike at the Dec. 16 meeting.