Looking Ahead: Week of December 16 through 20
US Calendar: Market attention is focused on Wednesday’s FOMC decision on whether to taper or not. Recent economic news has been moderately more upbeat with jobs and retail sales standing out. Some economists now put it at even odds of whether taper starts or not. News on two key sectors posts during the week. Manufacturing has shown signs of improvement and industrial production will provide a national summary for November. On the housing front, the Census Bureau plays catchup with starts data, releasing for three months—September, October, and November.
Global Calendar: Upcoming is the last full trading week before year end and the calendar is busy. The Bank of Japan, Reserve Bank of India and the Federal Reserve all hold monetary policy meetings. The latter will be followed by what will be Ben Bernanke’s last press conference before his term as governor ends. While analysts expect more easing from the BoJ, they also assume it will be in the spring. The economic data plate is full and includes December flash PMIs and the Bank of Japan’s Tankan survey.