CMC Markets Weekly Report
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.
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.
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Constructive early talks between Republicans and Democrats about fiscal policy — including hints Republicans might close loopholes to raise revenue while the White House wanted higher taxes — helped calm markets and contributed to a late-week rally on Wall Street.
The Dow closed up about 45 points (0.4%), the S&P 500 finished up 0.5% at 1,359, and the Nasdaq gained around 0.6% after the positive tone from fiscal discussions.
With Thanksgiving on Thursday and a half-day for the NYSE on Friday, expect lower liquidity, shorter trading hours and some position squaring ahead of the break, which can increase short-term volatility.
Key US releases are housing market sentiment and existing home sales (out tonight), housing starts on Tuesday, and the Conference Board leading index and the University of Michigan fortnightly consumer sentiment measure on Wednesday.
HSBC will release a flash manufacturing PMI for China on Thursday, followed by the eurozone's PMI on Thursday night; these PMIs are early indicators of industrial activity and can signal broader global growth trends that affect markets.
In Australia, AGMs continue, and the week brings the Conference Board and Westpac leading indices (out tomorrow and Wednesday), housing affordability data on Wednesday, and the RBA minutes released tomorrow.
RBA minutes can give insight into monetary policy thinking and influence interest-rate expectations, while housing affordability data can affect consumer sentiment and property-related stocks — both can drive short-term moves when released.
Prepare by checking release times for key data, expecting lighter liquidity and possible volatility, avoiding large, illiquid trades around holiday half-days, and ensuring stop-losses or position sizes reflect the higher short-term risk.
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