- US November jobs report to shape market expectations on Fed policy.
- China’s PMI data to offer insights into economic recovery efforts.
- ASEAN nations release key manufacturing and retail data for November.
As we enter December, the final month of the year, markets brace for a mix of crucial economic data and corporate updates that could set the tone for year-end trading. Investors will be watching employment figures, manufacturing activity, and earnings reports closely to gauge economic momentum and market sentiment.
United States: Jobs Report and Beige Book Take Center Stage
In the US, the spotlight will be on the November jobs report, scheduled for release on Friday. Markets anticipate a gain of 183,000 non-farm payrolls, slightly higher than October’s increase. This report will provide crucial insights into the resilience of the US labor market, a key factor for Federal Reserve policymakers in determining future interest rate decisions.
The Fed will also release its latest Beige Book on Wednesday, offering qualitative insights into economic conditions across various regions. With lingering uncertainties about the inflation trajectory, these updates could influence market sentiment and expectations for monetary policy in 2024.
On the corporate front, the earnings season slows down but remains relevant, with Salesforce, Inc. (NYSE: CRM) and Marvell Technology, Inc. (NASDAQ: MRVL) among the highlights. Salesforce’s earnings on Tuesday will provide insights into the adoption of its Agentforce and Agent Builder platforms, while Marvell’s outlook on AI-driven growth could captivate investors.
China: Manufacturing and Services PMI in Focus
China’s economic recovery will remain under scrutiny as the Caixin China Manufacturing PMI and Caixin China Services PMI data are released midweek. These indicators will help investors gauge the impact of recent policy pivots and stimulus measures aimed at revitalizing growth.
Additionally, the performance of Chinese technology and industrial stocks will be watched closely as the government’s renewed support for private enterprises plays out. Global markets are looking for signs of stabilization in the world’s second-largest economy, which has significant implications for commodity and trade-dependent nations.
Developing Markets: ASEAN Economic Updates
Malaysia: Malaysia’s S&P Global Manufacturing PMI will provide a pulse check on its industrial sector, which has shown resilience despite global headwinds.
Indonesia: Indonesia’s November inflation data, due on Monday, will be pivotal in assessing the country’s consumer price trends. Analysts expect YoY inflation to moderate to 1.6%, while tourist arrivals data could provide clues about the recovery of its vital tourism sector.
Singapore: Singapore will release its SIPMM Manufacturing PMI for November, a key indicator of industrial activity in the city-state. Retail sales data for October, due Thursday, will also be closely watched.
Thailand: Thailand’s economic indicators include November’s Business Confidence Index, which could provide insights into corporate sentiment. Inflation data on Friday is expected to see a slight increase but remain relatively stable.
Europe: EU Retail Sales and Investor Events
The European Union will release October retail sales data on Wednesday, expected to show a modest YoY increase of 1.2%. This could highlight the region’s economic resilience amid ongoing geopolitical and inflationary pressures.
Conclusion
This week’s events are a mix of critical macroeconomic data, earnings updates, and influential investor conferences. Key themes include the US labor market’s strength, China’s recovery trajectory, and ASEAN’s economic resilience. With so much at play, investors will need to remain vigilant to navigate the global market dynamics effectively.
Disclaimer: ProsperUs Head of Content & Investment Lead Billy Toh doesn’t own shares of any companies mentioned.
