We pick up the new year with a full schedule of data, heavy treasury issuance, Fed speeches and ongoing trade negotiations.
Heavy supply of US treasuries to be settled this week with the US Treasury settling approx. $298bn in bill and note auctions throughout the week, raising approx. $42b in new money.
The partial US govt shutdown continues amid escalating threats/posturing to shut down the border with Mexico if funding for the border wall is not approved. Democrats will take control of the House of Representatives this week on 3 Jan 2019.
US Fed Chairman Powell will take part in a panel discussion on Friday – looking for any further signalling on rates from the Fed Chairman.
Data releases this week keep trade and growth in focus;
US ISM Manufacturing PMI to provide further insight into US manufacturing momentum after several weaker regional survey results recently.
US non-farm payrolls will be released on Friday (despite the partial govt shutdown).
Final versions of the Dec PMI’s will be released across key economies during the week to also provide some insight into the extent of export new orders/trade and manufacturing slow-down especially within the Eurozone, China and Japan.
Trade negotiations between the US and China are set to continue next week. The 1 March deadline for negotiations remains in place.
The UK vote on Brexit remains on the radar with a vote now likely during the week of 14 Jan 2019.
More detail is provided in the full briefing document. You can download it here;
The Macro Review will be posted next Monday.
Comments and feedback are welcome. Please email me at kim.mofardin@marscapitalpartners.net
