Pepperstone

Tuesday was another relatively quiet day for markets as participants continue to cruise towards Christmas, though the final FOMC decision of the year later may shake things up a little more.

While 2024 will be remembered for some exceptional returns in the US equity markets, gold, and crypto - except for a few days of high drama in early August 2024 has been a year of low cross-market volatility.

A subdued start to the week yesterday, as a bumper slate of event risk continues to loom large over markets, with today’s docket highlighted by the latest US retail sales report.

A choppy day on Friday, with little by way of catalysts for market participants to digest. Now, a bumper final full trading week of the year lies in wait.

A mixed November US labour market report provided more questions than answers for participants on Friday, though stocks notched fresh records regardless. Another busy week now awaits.

The eurozone has endured something of a torrid end to 2024, with downside growth risks having intensified, the domestic political backdrop having soured, and the disinflationary process back towards the ECB’s 2% target having progressed faster than expected.

As 2024 draws to a close, many turn their attention to the year ahead, exploring the potential major macro themes and event risks that could shape market sentiment and influence the trading landscape.

The last year has been an interesting, if sub-par one, for the UK economy, with price pressures remaining relatively stubborn, and economic momentum having faded in the second half of 2024. While a greater degree of political stability is now present, after Labour’s election victory and sizeable Commons majority, uncertainty over the perilous fiscal backdrop should see both business and consumer confidence remain depressed, denting economic activity into 2025.

Markets didn’t do especially much of interest yesterday and, although a busy data docket awaits today, the mood among participants is one of waiting patiently for Friday’s US jobs report.