Market news that dominate the beginning of 2020.
US jobs report, Eurozone inflation and retail sales, ISM non-manufacturing PMI, trade balance and factory orders in US, Chinese CPI and PPI numbers and industrial data from Germany will dominate the market.
In US, after two consecutive months of declines, factory orders rose by 0.3% m/m in October. They are forecast to maintain a positive trend in November to rise by 0.2%. ISM non manufacturing composite is expected to have increased from 53.9 to 54.5 in December.
The market focus will be on Friday’s jobs report. Non-farm payrolls are expected at 165k, a slowdown from the previous month’s gain of 266k jobs, which had been boosted by one-off factors such as the end of the General Motors strike.
The unemployment rate is forecast to have remained at 3.5% and average hourly earnings are also anticipated to have held steady at 3.1% y/y.
In Eurozone, the headline rate is forecast to have risen further, increasing from 1.0% to 1.3% y/y in December, but the two core rates are expected to have stayed unchanged.
The CPI in China in due on Thursday and the headline CPI is expected to have risen to 4.7% y/y, while the PPI is expected at -0.4% y/y. In November, CPI jumped to the highest in eight years, but markets largely ignored the spike as it was mainly down to soaring pork prices and a bigger concern is the continued weakness in producer prices.