The Santa rally faded at the end of the week in Europe and there’s a risk the same could be heading to the US in the last few trading days before Christmas. Nevertheless US markets are looking higher ahead of Monday’s open aided by a temporary bottom in oil prices.
Santa may be more generous to the US than Europe this year. It was largely thanks to the Federal Reserve and its "patient" approach to the first rate-hike that turned around sentiment globally last week and as such the US should benefit the most. In Europe, there is still uncertainty about how much more can be done by the ECB despite falling inflation.
The improvement seen in retail sales last week goes to show the benefits the consumer-led US economy could be set to feel from the lower Oil prices. Markets have not exactly cherished the uncertainty surrounding sharply falling oil prices but should take a very different view on stable low prices that reduces energy costs for production and consumption.
Existing home sales data for November, released at 3pm GMT is expected to remain steady at 5.25M, down slightly from the 5.26M in October.
Walgreen Co (NYSE:WAG) is delisting from the NYSE following the reorganisation into a holding company that includes Alliance Boots. It is expected to list again on the Nasdaq under the ticker WBA in the new year.
Staples Inc (NASDAQ:SPLS) shares could feel renewed pressure following further data on the number of credit cards lost in this year’s security breach.
Futures suggest the:
S&P 500 will open 5 points higher at 2,075 with the
Dow expected to open 35 points higher at 17,839 and the
NASDAQ Composite 15 points higher at 4,296.
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