Morning Overview of Upcoming Events and What to Expect

The upcoming economic calendar is extremely busy, with a strong focus on the United States, where key data on growth, inflation, the labor market, and consumer sentiment will be released within a few hours. The day begins with ADP employment data, providing an early indication of the labor market’s condition, before attention shifts to a large package of macroeconomic indicators at 3:30 PM. At that time, revised U.S. GDP data for Q3, the GDP price index, durable goods orders, building permits and housing starts, as well as the Federal Reserve’s preferred inflation measures – PCE and core PCE – will be published. This combination of data will be crucial for market expectations regarding future monetary policy, especially amid speculation about potential interest rate cuts next year.

Later in the day, investors will watch industrial production data for additional clarity on the state of the real economy, along with the Conference Board’s Consumer Confidence Index for December, an important indicator for consumption outlooks. Attention will also be on the Atlanta Fed’s GDPNow model update for Q4, which often influences short-term market sentiment. The day will conclude with a 5-year U.S. Treasury auction and a series of new home sales data, which could add volatility during the low-liquidity end of the session.

Outside the U.S., Canada will release monthly GDP data for October and November, which will be closely watched amid slowing economic activity and expectations for future Bank of Canada actions. Later in the day, markets will focus on CFTC data on speculative net positions in the British pound, which can signal large players’ positioning and potential for sharp GBP movements. Overall, the day is likely to bring heightened volatility, especially for the dollar, bonds, and risk assets.

Link to the full calendar:
https://calendar.varchevbrokers.com/calendar.php?lang=bg

Top 5 Things to Know Before European Markets Open

Gold has risen to a new all-time high – for the 50th time this year, setting new records. Silver also reached a new peak, while platinum and palladium experienced strong rallies. In contrast, oil and copper prices saw slight declines.

The Japanese yen continues to strengthen against the U.S. dollar, becoming the best-performing G-10 currency, followed by the New Zealand dollar and the Swiss franc. The yen’s recovery is supported by the euro’s strength, while the Bloomberg Dollar Spot Index fell for a second consecutive day.

Asian equity markets rose after the S&P 500 erased its December losses on Monday. The global equities indicator increased for the fourth consecutive day, while U.S. and European index futures remained mostly unchanged.

Novo Nordisk received approval to sell a tablet version of its obesity drug Wegovy in the U.S., boosting the company’s American depositary receipts in after-hours trading.

President Donald Trump announced plans to meet next week with leaders of major U.S. defense companies to pressure them to allocate more funds to weapons development instead of share buybacks, executive compensation, and dividends. He also stated that the U.S. Navy will build a new Trump-class warship.

European Markets Expected to Open Lower, Extending Losses for a Second Day

The FTSE 100 is expected to open down nearly 0.2%, the French CAC 40 around 0.1% below neutral, and Germany’s DAX slightly lower, according to IG Group data.

The pan-European Stoxx 600 closed Monday down 0.1%. However, the benchmark is up about 14% year-to-date and appears on track for a third consecutive year of gains with one week remaining.

Investors will closely watch Novo Nordisk shares after the FDA approved the first-ever GLP-1 pill, giving the Danish company an edge over U.S. competitor Eli Lilly.

At the other end, Danish renewable energy giant Orsted fell 13% on Monday after the U.S. Department of the Interior announced it was halting lease contracts for five offshore wind projects under construction. Orsted had previously successfully challenged a Trump administration order to stop the nearly completed Revolution Wind project off Rhode Island, temporarily paused earlier this year.

On Tuesday, Spain’s GDP data is expected to be released.

Asia-Pacific markets opened mostly higher on Tuesday after AI-driven trading supported Wall Street’s main indexes overnight. In the U.S., equity futures traded near neutral levels Monday evening after a strong start to the shortened trading week.