As Wall Street takes off this week, thin trading conditions may persist. While trading volumes will likely be lower this week, there will be plenty of economic readings. No earnings will be reported and there won’t be any Fed talk.
Monday’s US markets will be closed for the Christmas holiday. Tuesday will contain several economic releases which are expected to indicate that the economy’s strength is waning. Wholesale inventories in November are expected to increase at a slower pace, both the October readings for the FHFA house price index and S&P Corelogic Case-Shiller releases will show the housing market continues to weaken. According to the Dallas Fed Manufacturing Activity report, business activity is still low. The December Richmond Fed Manufacturing index will likely continue its downward trend, and November’s pending home sales will weaken. Thursday will feature both weekly initial jobless cases and the MNI Chicago PMI readings that could show a rebound.
No releases are available from Germany. Spain will release CPI and retail sales data.
The UK continues to be dominated by strike action over the Christmas period. The Nationwide House Price Survey will be released on Friday. It should reveal that the housing market is in dire…