It is the first of December and the year is winding down. The mood is festive, but the market is not. Liquidity is still holding for now, but it usually starts to thin out in the second half of the month. Key dates to note: the Day of Reconciliation on the 16th, the JSE early close on the 24th, Christmas on the 25th, the Day of Goodwill on the 26th, and New Year’s Day on 1 January. Major markets follow a similar holiday pattern. The market is also pricing in a 99% chance of the FED cutting rates on the 10th, while central-bank meetings for the EUR and GBP are due on the 18th.
Turning to this week, the only notable release comes from the Eurozone, with Core CPI YoY out tomorrow. Markets expect no change, with inflation holding steady at 2.4%.
