This is a shortened The Week Ahead, I hope everyone is enjoying some time away from the markets and the news to concentrate on loved ones. 2021 is just around the corner, with estimates of the S. P. 500 finishing up 10%, I am sure there will be some volatility and some great trading opportunities. Mark and Mike are busy researching the best trades and will bring them to you. Thanks for being a part of The Options Edge.
Global Spotlight
The final act of the Brexit saga. Though the European Union and the United Kingdom reached a free trade agreement on Dec. 24, removing a massive source of economic uncertainty in Europe, the Brexit saga is not completely over.
COVID-19 vaccination campaigns begin in Europe. The EU’s largest economies, including Germany, France, Italy and Spain, will start vaccinating their populations against COVID-19 on Dec. 27, with the primary focus on the elderly and health care workers.
Talks over a Chinese-EU investment agreement. Though China and the European Union aim to wrap up talks on a bilateral investment agreement by the end of the year, that goal is increasingly in jeopardy as talks continue.
Stratfor.com
Economic Calendar
A brief look at the caledar this week.
Monday, December 28
- 10:30 AM Dallas Fed manufacturing index, December (consensus 10.2, last 12.0)
Tuesday, December 29
- 09:00 AM S&P/Case-Shiller 20-city home price index, October (GS +1.1%, consensus +1.00%, last +1.27%): We estimate the S&P/Case-Shiller 20-city home price index rose by 1.1% in October, following a 1.3% increase in September.
Wednesday, December 30
- 08:30 AM Advance goods trade balance, November (GS -$81.0BN, consensus -$81.5BN, last -$80.3BN); We estimate that the goods trade deficit increased by $0.7BN to $81.0BN in November compared to the final October report, as imports and exports likely rose further.
- 08:30 AM Wholesale inventories, November preliminary (consensus +0.7%, last +1.1%); Retail inventories, November (last +0.8%)
- 09:45 AM Chicago PMI, December (GS 56.0, consensus 56.5, last 58.2); We estimate that the Chicago PMI declined by 2.2pt to 56.0 in December, reflecting a sharp rise in jobless claims in the region.
- 10:00 AM Pending home sales, November (GS -3.5%, consensus +0.1%, last -1.1%); We estimate that pending home sales declined by 3.5% in November, reflecting a further deceleration in regional home sales data.
Thursday, December 31
- SIFMA recommends an early 2:00 PM close to bond markets.
- 08:30 AM Initial jobless claims, week ended December 26 (GS 810k, consensus 830k, last 803k); Continuing jobless claims, week ended December 19 (consensus last 5,337k): We estimate initial jobless claims increased to 810k in the week ended December 26.
Friday, January 1
- New Year’s Day holiday. There are no major economic data releases scheduled. NYSE will be closed. SIFMA recommends bond markets also close.
Briefing.com Source: DB, Goldman
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