Our expectations for the next week: Christmas mood and risk on sentiment

The pre-Christmas indices ended at new highs. In the last month of the year, two of the most important political and geopolitical problems have been resolved, at least at this stage. Trade War and Brexit. The well-known meltdown on both fronts has brought the much-anticipated and needed relief to investors that, for now, the recession will be avoided and the global economy will begin to recover.

What to expect next week? We will expect sentiment to remain positive, but the indexes and stocks will decline at some rate due to positioning for next year, closing positions and collecting profits. Risk on sensation is maximized, with extreme greed levels in terms of sentiment indicators.

It should be remembered that with the gradual withdrawal of market participants, liquidity will start to decline and the market will remain thin.

In spite of the limited working hours and the disruption of the markets, we have some fundamental data in the economic calendar that we will expect.

Monday - US durables, Canada's GDP and new home sales in the US. We have a BoJ report on monetary policy Tuesday, and at the end of the day, API has weekly data on oil stocks. Markets rest on Wednesday, and Thursday, through Asian trade, Kuroda - the chairman of Bank of Japan - will have a speech, with an initial request for US aid in a premarket session. Friday mood will not be expected calm after Christmas Eve and Christmas - In the small hours after the start of Asia we will expect CPI for Japan, industrial production and retail sales. The ECB Economic Bulletin will be released at 11:00 AM, and later for the US, Baker Hughes oil and oil reserves.

This year, there is no sign that the Christmas Rally will be sabotaged, but rather. It is not just the markets that are gaining momentum and pace, but also the investors themselves, who are becoming very hopeful for next year's presentation of risk assets and the global economy.

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