US: Focus on preliminary Markit Service PMI for December – Danske Bank

Research Team at Danske Bank suggests that in the final week ahead of Christmas, focus remains on markets digesting last week's slightly hawkish Fed message amid most global economic surprise indices reaching new highs and US-China tensions rising.

Key Quotes

“Wednesday's FOMC minutes will shed more light on the board discussions about the 2017 outlook. which will be held against this week's bunch of US data releases including market Service PMI, capital goods orders, personal spending, Q3 GDP (third release) and PCE inflation.”

“In the US, the preliminary Markit Service PMI for December is due today. We estimate the index moved slightly higher to 55.0 in December, from 54.7 in November, indicating solid Q4 growth. Tonight, Fed Chair Janet Yellen will hold a speech at a university commencement, which will attract market attention even if the setting is unusual for any market shifting comments.”