China Manufacturing PMI, Eurozone CPI and NFP - Top news that will move the market

1. China Caixin Manufacturing PMI - We expect production data in China at 03:45 on Tuesday, with expectations for the downward trend to 50.6 to 50.8 last month. This will mostly be the result of the many closed-loop companies in the government that pollute the air. Part of Beijing's 2018 program is to reduce emissions to a minimum, and this in turn will negatively affect production in the country. Given this, even if we see weaker data on China's manufacturing PMI, we do not expect this to have a strong impact on the stock market or JPY and GOLD as havens.

2.Non Farm Payrolls - Friday's most important economic event will be the publication of new job data, average hourly wage and unemployment rate in the United States. New jobs are expected to decline, average hourly wages increase and unemployment remain at the current levels of 4.1%. Better data from the United States would support the USD, but given the low expectations, we think the dollar will trade down in the first week of 2018.

Eurozone CPI - ECB will release inflation data on Friday. The consensus is that the report will show a 1.4% rise in consumer prices compared to a 1.5% rise in November, while key inflation is expected to grow to 1.0%, compared with 0.9% during the previous month. At its last session in 2017, The ECB has raised its growth forecast but has admitted that inflation will not be reached by 2020. The ECB is targeting inflation close to but slightly below 2.0%. The ECB has also voted to leave interest rates at current levels and confirmed that QE will work for at least September 2018.

Source: Bloomberg Pro Terminal

Jr Trader Petar Milanov

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