5 main events on US stock market-Budrigan Ltd Review

Budrigantrade.com - After a volatile but profitable year for investors, the final week of 2021 appears to be quiet. In many non-U.S. markets, trading will be shortened during the holiday week, likely resulting in lower volume overall. Does that indicate a positive end to the year, or could a surprise occur later?

To get you ready for the week, here are the essentials.

Santa Rally is observing

The S&P 500 closed on Thursday at all-time highs, and many other indices around the world set recent or year-to-date high marks, making last week's trading reminiscent of the holidays. That sets the stage for this week and the so-called "Santa rally," as asset prices follow the path of least resistance, which has frequently been higher in recent years due to low volume and a lack of news. However, the fact that the news of the Omicron variant occurred during the most recent Thanksgiving weekend in the United States serves as a reminder that when bad news does occur, its impact can also be exacerbated by irregular trading.

Oil Crude Inventories

Investors and traders may benefit from keeping an eye on the crude oil inventories report on Wednesday in the midst of a slow data week. Oil closed up 4% for the week as a result of the largest drawdown in inventories since September and relief over the Omicron Covid-19 variant's lower severity. Industry participants anticipate a full recovery to pre-Covid demand in 2022, with OPEC+ on track to increase supply, and this will be a final check-in before the new year to see whether that story is holding up through the winter. At the same time, gasoline inventories rose significantly more than expected, which may be a sign of slowing fuel demand amid that same Omicron's spike in the United States.

A few corporate and economic reports

This week, a few regular reports will be out, including the Chicago PMI report on Thursday, the weekly jobless claims report on Wednesday, and the pending home sales report on Thursday. Each will provide an end-of-year thermometer reading on various aspects of the economy, including read-throughs of inflation, economic expansion, and the cycle's current position.

(NASDAQ) Cal-Maine Foods Since the egg producer will report on Tuesday following the close, (CALM) is the headliner of a sparse earnings reporting schedule. This may indicate inflationary costs in the agricultural sector.

Omicron

Identifying the severity of the Omicron variant will continue to be an important sideshow for investors and traders despite the holiday season's havoc on regular Covid-19 testing patterns. The rally last week was partly sparked by a number of reports that Omicron may spread more quickly than previous Covid-19 variants, but it also has a significantly lower risk of hospitalization. This could be because the population is more immune to it or because the variant is different.

The two things to keep an eye on are whether or not this initial data receives any additional support and how people's and governments' responses will affect the markets. As the tug-of-war between keeping hospitals from overflowing, not spoiling the holiday season, and keeping people safe continues for governments, it remains to be seen if other governments will follow South Africa's lead and if the purported "end of the pandemic" has already been priced into markets. South Africa, where Omicron was first identified, has already loosened some of the quarantine and testing rules that were put in place after the outbreak.

China

To close out the year, China returns to the spotlight. Its December PMI is scheduled to be released at the end of the week. The manufacturing reading is expected to be 49.6, indicating a slight decrease in activity. That number has been hovering around break-even 50, and given that China has so far taken a more assertive stance in preventing the Omicron variant from spreading, this number will be closely watched.

China stocks are additionally on watch after the nation delivered draft decides that would prompt fixed examination on abroad postings yet permit Chinese organizations to list abroad. This clarity, even if it is a tighter policy than in the past, may provide investors with relief after a turbulent year for Chinese stocks.

Last but not least, Baidu On Monday, BIDU) will host a metaverse conference that it claims to be the first in China. This comes as the company begins internal testing of its metaverse app.

Wishing you merry Christmas and a solid and prosperous 2022! (Budrigan ltd)