Week Ahead: BoE Meeting and FOMC Minutes in Focus

5 Jan 2015
Week Ahead: BoE Meeting and FOMC
Minutes in Focus
Summary of key economic events
5 January
Australia
Trade Balance
Japan
Monetary Base
Composite PMI
Services PMI
China
HSBC Composite PMI
HSBC Services PMI
UK
Germany
House Prices
CPI
Retail sales
6 January
UK
Services PMI
Composite PMI
Official Reserves Changes
Germany
Services PMI
Composite PMI
Eurozone
Services PMI
Composite PMI
US
Composite PMI
Services PMI
7 January
Japan
Foreign Buying Japan Stocks
Germany
Unemployment Rate
Retail PMI
Eurozone
Retail PMI
Unemployment Rate
CPI
US
MBA Mortgage Applications
Trade Balance
Fed Releases FOMC Meeting Minutes
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8 January
Australia
Foreign Reserves
Japan
Official Reserve Assets
China
PPI
CPI
UK
BOE Asset Purchase Target
Bank of England Bank Rate
Germany
Factory Orders
Eurozone
PPI
Retail Sales
US
Initial Jobless Claims
Continuing Claims
9 January
Japan
Trade Balance
China
Money Supply
New Yuan Loans
Aggregate Financing RMB
Foreign Reserves
UK
Trade Balance
Industrial Production
NIESR GDP Estimate
Germany
Industrial Production
Trade Balance
Current Account Balance
US
Change in Nonfarm Payrolls
Unemployment Rate
Source: Bloomberg
FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity Worldwide
Investment. Fidelity only gives information about its products and services. Any person
considering an investment should seek independent advice on the suitability or otherwise of
the particular investment. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide
Investment logo and the F symbol are trademarks of FIL Limited.
Performance of major stock market indices
End
Index
2013
2014
Daily
Dec 31
Jan 2
Percent Change
Change
Daily
2014
Yr/Yr
North America
United States
Canada
Dow
16576.7
17804.8
17833.0
9.9
0.1
0.1
8.3
NASDAQ
4176.6
4765.4
4726.8
-9.2
-0.2
-0.2
14.4
S&P 500
1848.4
2070.7
2058.2
-0.7
0.0
0.0
12.4
13621.6
14468.3
14753.7
121.2
0.8
0.8
8.9
S&P/TSX Comp**
Europe
UK
FTSE 100
6749.1
6545.3
6547.8
-18.3
-0.3
-0.3
-2.7
France
CAC
4296.0
4241.7
4252.3
-20.5
-0.5
-0.5
0.1
Germany
XETRA DAX
9552.2
9787.0
9764.7
-40.8
-0.4
-0.4
3.5
Italy
MIB
18967.7
18983.8
19130.3
118.3
0.6
0.6
0.1
Spain
Ibex 35
9916.7
10363.6
10350.8
71.3
0.7
0.7
5.6
Sweden
OMX Stockholm 30
1333.0
1452.4
1463.8
-0.8
-0.1
-0.1
10.5
Switzerland
SMI
8203.0
8976.2
*
*
*
*
*
1.2
Asia/Pacific
Australia
All Ordinaries
5353.1
5312.7
5415.0
26.4
0.5
0.5
Japan
Nikkei 225
16291.3
17621.4
*
*
*
*
*
Hong Kong
Hang Seng
23306.4
23116.6
23857.8
252.8
1.1
1.1
4.6
S. Korea
Kospi
2011.3
1930.0
1926.4
10.9
0.6
0.6
-1.0
Singapore
STI
3167.4
3279.5
3370.6
5.4
0.2
0.2
7.6
China
Shanghai Comp
2116.0
3108.6
*
*
*
*
*
India
Sensex 30
21170.7
27371.8
27887.9
380.4
1.4
1.4
33.7
Data Source — Haver Analytics
FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity Worldwide
Investment. Fidelity only gives information about its products and services. Any person
considering an investment should seek independent advice on the suitability or otherwise of
the particular investment. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide
Investment logo and the F symbol are trademarks of FIL Limited.
US markets
Following the New Year's Day holiday on Thursday, stocks fluctuated over the course of the
trading session Friday before ending the session roughly flat. The lackluster performance came
on the heels of Wednesday’s sharp pullback. The Dow Jones industrials edged up 0.1%, the S&P
was virtually flat and the Nasdaq was 0.2% lower. For the week, the Dow was down 1.2% while
the Nasdaq and the S&P were down 1.7% and 1.5%, respectively. The choppy trading came as
many traders remained on the sidelines following the New year’s holiday.
Economic data released Friday disappointed. The December ISM manufacturing index indicated a
slowdown in the pace of growth. The index slid to a reading of 55.5 from 58.7 in November but
still indicated healthy growth. November construction spending surprised as it declined 0.3%.
Analysts had expected an increase. The disappointing data largely overshadowed comments from
European Central Bank president Mario Draghi adding to speculation that the bank will provide
further stimulus soon.
Many market participants say the backdrop for US stocks remains positive. A continued economic
recovery should brighten the outlook for corporate profits. The sharp slide in crude oil prices in
2014 should put more money in the pockets of consumers, which could spur spending and boost
economic and corporate profit outlooks.
Gold at the afternoon London fixing dropped US$34.00 to US$1,172.00. Copper futures were
down 0.3% to US$2.82. WTI spot crude was down 58 US cents to US$52.69. Dated Brent spot
crude was down 91 US cents to US$56.42. The US dollar was up against all of its major
counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian
dollars. The Dollar Index was up 1.0%. The yields on both US Treasury 30 year bond and 10 year
note were down 6 basis points to 2.69% and 2.11% respectively.
European markets
Shares were mixed Friday. Comments from European Central Bank President Mario Draghi
hinting at full scale quantitative easing failed to inspire much buying interest today, as Eurozone
manufacturing activity grew at a slower pace in December than previously estimated. Draghi said
that the risk of deflation in the euro area has risen over the months and the ECB is preparing to
react to such a threat if necessary. The FTSE declined 0.3%, the CAC was down 0.5% and the
DAX lost 0.4%. The MIB and IBEX rallied 0.6% and 0.7% respectively after Mr Draghi’s remarks.
The Swiss market remained closed. All indices were down for the week.
Eurozone December manufacturing PMI reading was 50.6, down from the flash estimate of 50.8.
However, it was still 0.5 points above the November reading of 50.1.
Commerzbank and Deutsche Bank posted solid gains. Telefonica Deutschland Holding said that it
has closed the sale of yourfone GmbH to German telecom company Drillisch. Telefonica
Deutschland is part of Spanish telecom group Telefónica whose shares were slightly lower. Royal
Bank of Scotland retreated after The Times newspaper reported it might face fines over the sale
of toxic mortgage backed debt in the US of more than £5 billion. Rio Tinto Group and Anglo
American were among stocks dragging a gauge of commodity producers lower.
FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity Worldwide
Investment. Fidelity only gives information about its products and services. Any person
considering an investment should seek independent advice on the suitability or otherwise of
the particular investment. Fidelity, Fidelity Worldwide Investment, the Fidelity Worldwide
Investment logo and the F symbol are trademarks of FIL Limited.

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