Republicans and Democrats held constructive early talks with regard to fiscal policy on Friday which may see Republicans give way on raising tax revenues. While the Republicans want to raise tax revenue by closing loopholes, Obama wants to raise tax revenue by raising taxes.
The slight show of unity was enough to help Wall Street turn around on Friday. The Dow managed a rally to close up 45 points or 0.4%.The S&P finished up 0.5% to 1359 and the Nasdaq gained 0.6%.
This week in the US has Thanksgiving on Thursday and a half-day for the NYSE on Friday. Expect to see some squaring up of positions ahead of the holidays break. This week's US data releases will be pushed into three days with housing market sentiment and existing home sales out tonight, housing starts on Tuesday and the Conference Board leading index and Michigan Uni fortnightly consumer sentiment measure out on Wednesday.
On Thursday HSBC releases its flash manufacturing PMI for China, hoping for further indications of a turnaround. The eurozone will follow with its own version on Thursday night.
In Australia AGMs continue. In terms of economic data we have the Conference Board and Westpac leading indices out tomorrow and Wednesday and housing affordability also on Wednesday. Tomorrow will see the release of the RBA minutes.