05.12.16 Monday Morning

After potentially pivotal Nonfarms and an historic deal from OPEC, we look at the trading week ahead.
 

UK
The week begins with a services PMI for November being released on the Monday morning. The figure is expected to fall from 54.5 to 54, although this still indicates there is expansion in the sector. We wait until Wednesday for the next important figure coming in the form of October’s month on month manufacturing production. Measuring the inflation adjusted value of output produced by manufacturers, this figure is also set to come in lower than the previous result; falling from 0.6% to 0.2%. Finally, on Friday there is the trade balance figure for the month of October. The projected increase from -12.70b to -11.80b conveys a slight increase in exports versus imports into the UK.

US
There is a similar start to the week across the pond with the US’ non-manufacturing PMI coming out on Monday. There is a different story this time though as the figure is expected to rise from 54.8 to 55.3. Again we wait till Wednesday for more significant data and this arrives with the job openings report, showing how many vacancies there are in America. There is also a crude oil inventory update to look forward to. This will surely prove a volatile time for investors particularly after the OPEC deal that was reached last week. However, it was the solid result from last Friday’s Nonfarms that could be the most pivotal piece of information for the week ahead. The result all but confirms an imminent rate hike and it will be interesting to see how the markets react.

Eurozone
The European markets will most likely be influenced by the results of this weekend’s Italian referendum. A loss for Renzi could have broad implications on the country’s future involvement in the EU. We wait until Thursday for the only significant update, this coming in the form of the interest rate decision. The six members of the European Central Bank Executive Board and the 16 governors of the euro area central banks will vote on where to set the rate with traders watching on with great interest. This is because rate changes are the primary factor in currency valuation.
 

Stock of the week: Starbucks
Howard Schultz, the visionary leader of Starbucks, will be stepping down next year as CEO of the iconic coffee giant. Schultz's surprise decision to step aside as the leader of Starbucks sent the stock sinking 3% in after-hours trading last Thursday. With the current chief operating officer Kevin Johnson, a tech industry veteran, set to replace Schultz as CEO it will be interesting to see how investors perceive the strength or weakness of this decision.