beware: 6 reasons to fear declines in the markets this week
Next week full of events in the U.S. and Europe, which may lead to falls ■ among other measures, attention to discussions about the fiscal cliff and Greece and Spain.
Markets in the coming week have full of important events on both sides of the Atlantic. The fiscal cliff and because European developments, here are some reasons for concern:
1. for long time a fiscal cliff attracts the attention throughout the trading week, and lately even more. Any statement regarding the discussions between President Obama and Congress to immediately affect trade direction - positive and negative. With the beginning of December, the last month to resolve the issue, the pressure increases. This week is not expected significant developments.
2. In Europe, it is important to pay attention to the news from Greece and Spain. Greece is expected to receive a share of its aid package until the 13th month, the amount of 44 billion euros, but as recent history shows, the issue of Greece - It is not over until the money actually reaches its destination.
3. Spain is expected to issue 10-year bonds this week. Purchases by the European Central Bank recently lowered the yield on Spanish bonds, but Spain needs to sell more than 20 billion euros by the end of the year, and anything that will keep the investor risks ( and Spanish bonds are indeed risk) may cause stress to activate the OMT, purchasing program of the ECB has not yet been determined conditions. then, Spain's bond issue will gather interest this week and may bring a lot of pressure in the markets.
Europe also published a number of macro data are expected to vote on the continued contraction in the euro zone - best case is "less worse than expected."
4. This week will be published in the U.S. employment data, with the expected addition of 91 thousand jobs, compared to 171 thousand last month. Despite the figure looked bad in itself, it is unclear whether markets treat it as a given one Femi derivative of Hurricane Sandy, and therefore no clear influence the indices.
5. Ultimately, the index of consumer confidence and the University of Michigan published this week, and for a nation in the middle of crazy consumerism of the holiday season - especially important given (consumer spending account for two-thirds of U.S. GDP.
6. Tuesday - Thursday published declarations of interest of central banks of Australia, Canada, New Zealand, Britain and the eurozone. Because there are expected changes in interest rates or statements that come after them, the effect on the indices expected to be neutral.
Disclosure: I am long BOND. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.