FINANCIAL markets can look forward to more light trading in the week ahead but a series of US economic reports is expected to spruce things up.
The few traders and analysts who were working yesterday had little to occupy them as 1996 was drawing to a close, and most investors were away for the holidays. In Europe, a handful of British, French and possibly German releases were scheduled.
On Monday, US November leading indicators and existing home sales were due, followed by December consumer confidence, November new home sales and the December Chicago purchasing managers report on Tuesday.
Markets will be shut for New Year's Day on Wednesday but when they re-open on Thursday they will be treated to weekly US jobless claims and the December National Purchasing Management Association report. Finally on Friday there are November construction spending figures.
Analysts said indicators are generally showing the US economy performing a little more strongly in the fourth quarter.
"Many forecasters have up-graded expectations for Q4 growth by 1/4 to 1/2 percentage points to 2.5 per cent to 3 per cent," said analysts at Nikko Europe Plc in a research note.
As a result, markets are likely to pay increasing attention to any signs of pressure on the Federal Reserve to tighten policy, analysts said.
"The Fed will not hold another policy meeting until early February. But it should grow increasingly wary of the inflation implications of the current acceleration in growth," Nikko said.
