US: Key events for next week - Danske Bank

Analysts from Danske Bank take a look into next week’s key economic events in the US, that includes FOMC minutes. 

Key Quotes: 

“In the US next week, we get the preliminary core capital goods orders for October on Wednesday (…) We believe business investment has bottomed out and expect orders and shipments of core capital goods to rise in the coming months. Later on Wednesday, we get the preliminary Markit PMI manufacturing index for November, where it will be interesting to see if the positive signals for the manufacturing sector continue.”

“On Wednesday evening we get the FOMC minutes from the November meeting. As expected, there were no major changes in the FOMC’s statement. Most importantly, it said the case for a rate hike ‘has continued to strengthen’ (previously ‘has strengthened’) but that it had ‘decided, for the time being, to wait for some further evidence of continued progress toward its objectives’. It will be interesting to see what evidence the Fed needs. In our view, especially now that the US election is behind us, the higher wage growth and lower unemployment rate in the jobs report for October were sufficient.”

“A December hike is fully priced in the markets. Hence, the focus is now moving towards what to expect in 2017 with an economy gaining momentum and the outlook being for major fiscal stimulus from the Trump administration.”

“The week concludes with the preliminary Markit PMI service index for November on Friday (…) We believe the Markit PMI service index will stay around its current level in November suggesting the service sector is growing at a solid pace.”