In the new trading week, in addition to geopolitical uncertainties, investors are likely to focus increasingly on monetary policy developments. Economic and inflation data in particular could provide important impetus.
However, market participants should be prepared for a shorter trading week due to the upcoming Thanksgiving holiday.
Geopolitical risks on the rise again - US investors still largely unimpressed
Last week, Russian President Vladimir Putin signed an updated nuclear doctrine and initially spooked investors in the eurozone. It remains to be seen whether the geopolitical risks will also spill over onto the US stock markets. Russia had also deployed a medium-range ballistic missile against Ukraine in response to recent attacks by the Ukrainian side with longer-range Western missiles, according to Putin.
Midweek Fed minutes in view - "PCE core deflator" sees no change
The so-called transcripts of the latest Fed meeting (FOMC minutes) will be published on Tuesday at 20:00. Investors are likely to scrutinize these in the usual way for monetary policy clues.
At the last Fed meeting, the key interest rate was adjusted by 25 basis points to a level of 4.50-4.75 percent.
The PCE core deflator for personal consumption expenditure will be published on Wednesday at 2:30 pm. Economists expect an increase of 0.30 percent compared to the previous month and thus no change compared to the same period last year.
Gross domestic product could show signs of weakness
The growth rate of gross domestic product (annualized) is in focus at the same time and is expected to increase by 2.8% compared to the previous quarter, after previously 3.0%.
New orders for durable goods (14:30) could also provide important impetus, as they are generally associated with higher purchasing expenditure and could therefore provide an important indication of activity in the US economy.
US stock markets remain closed on "Thanksgiving" - reporting season draws to a close
As the stock markets will be closed on Thursday for Thanksgiving, many traders are likely to leave early for an extended weekend.
In the night from Friday to Saturday, investors will also be looking at Chinese economic data on the PMI production index and its counterpart for the non-manufacturing sector. These data are likely to set the tone for trading in the following week.
The reporting season should slowly but surely be coming to an end. Nevertheless, companies from the second and third tiers are reporting. On Monday, Zoom Video Communications' figures are on the agenda. On Tuesday, CrowdStrike Holdings and HP will present their figures for the past quarter.
