This coming week sees the schedule for economic announcements lighten ahead of the festive holidays. On the corporate front, just a few smaller companies are expected to provide any form of update. In the USA, economic announcements continue to dominate, prior to the fourth quarter/full year 2009 corporate results season commencing in mid to late January.
Away from GDP data, minutes from the Bank of England’s latest interest rate policy meeting (9th & 10th December 2009) are expected to be announced on Wednesday. While a unanimous vote is expected to leave the bank base rate unchanged, investors will be eager to see what the balance of vote in relation to additional measures or so called ‘Quantitative Easing’ proves to be. The level of Quantitative Easing was also previously left unchanged at £200 billion.
In the USA, a further estimate of third quarter 2009 GDP is expected on Tuesday. In addition, more data in relation to the US housing market is scheduled for release with existing home sales data for November expected on Tuesday. Following a significant reduction in interest rates and tax measures aimed at stimulating house purchases, transaction levels rose by 10.1pc to an annual rate of 6.1 million against the 5.54 million seen in September. Data in relation to ‘new home’ sales is expected on Wednesday. Events in the US housing market remain central for the direction of the credit crisis going forward.
• Tuesday –
• Wednesday –
• Thursday –
• Friday – Christmas Day
Key: Full year results (F), Interim results (I), Trading statement (TS)
Economics
In the UK, the third and final estimate for overall economic performance – Gross Domestic Product (GDP) – during the third quarter period of 2009 is expected to be announced on Tuesday. The second estimate provided back in late November saw a small positive revision being made to the initial October estimate. A decline of 0.3pc for the quarter was estimated, against the initial negative 0.4pc figure provided back in late October. The final estimate is expected by economists to confirm a contraction in GDP over the third quarter, although recent Government and Bank of England reports have been pointing towards a more positive trend during the fourth quarter of 2009 and first quarter of 2010.Away from GDP data, minutes from the Bank of England’s latest interest rate policy meeting (9th & 10th December 2009) are expected to be announced on Wednesday. While a unanimous vote is expected to leave the bank base rate unchanged, investors will be eager to see what the balance of vote in relation to additional measures or so called ‘Quantitative Easing’ proves to be. The level of Quantitative Easing was also previously left unchanged at £200 billion.
In the USA, a further estimate of third quarter 2009 GDP is expected on Tuesday. In addition, more data in relation to the US housing market is scheduled for release with existing home sales data for November expected on Tuesday. Following a significant reduction in interest rates and tax measures aimed at stimulating house purchases, transaction levels rose by 10.1pc to an annual rate of 6.1 million against the 5.54 million seen in September. Data in relation to ‘new home’ sales is expected on Wednesday. Events in the US housing market remain central for the direction of the credit crisis going forward.
Companies
On the corporate front, expected company announcements are few in number. No major companies are currently scheduled to provide results or trading updates.Week Ahead Diary
Corporate Diary
• Monday – Nasstar (F), Toledo Mining Corporation (I)• Tuesday –
• Wednesday –
• Thursday –
• Friday – Christmas Day
Key: Full year results (F), Interim results (I), Trading statement (TS)
