What to expect next week 13.11 - 17.11.2017

Last week, we witnessed a number of market catalysts that moved and changed the moods during the week. The chances of the US central bank to raise interest rates again in December are really high, as traders rely heavily on that. On Thursday, US stocks recorded their worst sale since August. The reason for this is the Senate decision, which will delay the implementation of tax cuts by 2019. The bonds jumped, and the dollar increased its losses. All major US indices point down, with the most expensive sales being in the technology sector. "Markets want to see these tax cuts," said Gary Bradshaw, Portfolio Manager at Hodges Capital Management. "I'm not sure if this will happen this year, but I think it will be a fact in 2018. That's the reason for the sale." S & P 500 lost 0.9% and Nasdaq 100 fell 1.2%. Trump's tour in Asia is coming to an end, with the main reasons for his visit to North Korea and trade deals between the US and China. He also insists on curbing the trade imbalance between the two countries, which is currently in favor of China. For this reason, many market participants expect Trump to declare billions of dollar deals to overcome the big difference. In Europe, the EU has announced that the area is on track to record and declare the highest growth rate over the past 10 years as the political uncertainty that threatened to shadow the bloc this year has largely failed to make a tangible influence. The GDP of the 19 member states will increase by 2.2% in 2017, compared with 1.7% expected. Looking at the UK, Teresa May may have to pay more for the EU for Brexit (possibly double), but this way she will get a much better deal. The country's GDP is projected to fall to 1.1% in 2019 when Brexit will be fully reflected in the economy. Unlike the UK, Spain is expected to avoid economic damage stemming from the events in Catalonia. The EU has raised its forecast for Spain's GDP growth to 2.8% from 2.5%. As far as inflation is concerned, it is expected to remain at 1.5% in 2017,and to lower to 1.4% in 2018.

Next week, corporate reporting of companies' quarterly earnings will be a major driver of market movements. Market participants will continue to monitor the development of a bunch of events. One is tensions around North Korea, with indications that a new nuclear rocket test will follow soon. Markets started to get used to this, like hedging tools such as ETF's, Gold, Silver, Yeni, and others. do not react so strongly to speculation. However, there is still a danger, and the markets should be watched with caution. Another market catalyst, highly anticipated by investors, will be the CPI data expected to be published by the UK, the US, Europe and Canada. The most accurate way to measure inflation movements in the region is through them. Inflation, for its part, plays a direct role in deciding on interest rates. Data on Gross Domestic Product are also expected in Germany and Japan. Also important for traders will be any information or details regarding business negotiations between China and the United States. The outbreak of political tensions in Saudi Arabia will play a key role in oil movements during the week.

The economic news that will drive the markets next week
Monday
21:00 USA - Federal Budget Balance

Tuesday
04:00 China - Industrial Production
09:00 Europe - German GDP
11:30 UK - CPI
12:00 Europe - German ZEW Economic Sentiment
12:00 Europe - GDP
15:30 USA - PPI

Wednesday
01:50 Japan - GDP
11:30 UK - Average Earnings Index + Bonuses
15:30 USA - CPI
17:30 USA - Crude Oil Inventories

Thursday
02:30 Australia - Employment Change
11:30 UK - Retail Sales
12:00 Europe - CPI
15:30 USA - Philadelphia Fed Manufacturing Index

Friday
15:30 USA - Building Permits
15:30 Canada - Core CPI

Read more:

• And for all the bounty hunters: Iran offers $80m for the head of Donald Trump
• US service member and 2 US Defense Dept contractors killed in Kenya attack
• Iranian Quds leader Qasem Soleimani has been killed – how are markets reacting
• A calm end of an otherwise loud 2019
• Old but Gold – Top 5 posts of Varchev Finance