Traders set for quiet Christmas trading amid latest economic growth data
Toronto-Canada (Dec 22)
"(There will be ) very low volume because a lot of people are obviously away; you have holidays so it's typically a very slow period," said
"What that can mean is, in the unlikely event you have significant news, the thin volume can exacerbate that movements to the up and down side but typically you don't have much news either."
Traders have two significant tailwinds after the Federal Reserve last week ended months of speculation by announcing it will start to cut back on asset purchases by
The U.S. central bank also went out of its way to reassure markets, saying short-term rates aren't going up from near zero any time soon.
While there is some disappointment at seeing a diminishing of a stimulus program that has kept long-term rates low and underpinned a strong rally on equity markets, it is balanced to an extent by relief that the Fed deems the world's largest economy healthy enough to start unwinding the latest episode of quantitative easing.
That relief manifested itself in a string of gains last week, leaving the TSX up 2.1 per cent for the week while the Dow advanced 2.95 per cent. The showing left the
Also boosting gains at the end of the week was data showing the U.S. economy grew at a solid 4.1 per cent annual rate from July through September, the fastest pace since late 2011 and significantly higher than the previous reading of 3.6 per cent.
Much of the upward revision came from stronger consumer spending.
This coming week, the dollar could find some lift from the latest reading on the Canadian economy. Statistics
"Spinoffs tied to a bin-busting grain crop helped lift manufacturing shipments by a solid one per cent month over month," observed
"That sector was a heavy hitter in September and should contribute to growth again in October."
The loonie lost 0.47 of a cent US last week as the American currency strengthened in the wake of the Fed tapering announcement and the revised GDP number.
There is also top-drawer U.S. data for investors to consider this week, starting off on Monday with personal income and outlays for November.
Traders will also take in the latest reading on consumer confidence from the widely-watched
And U.S. durable goods orders are released on Tuesday. The consensus calls for orders to have risen by 1.8 per cent in November, following a 0.8 per cent rise the previous month