It will be another holiday-shortened trading week with many markets around the world closed on Wednesday for New Year’s Day.
China will report some closely-watched purchasing-managers’ indices. It is expected to show that both the manufacturing and services sectors are still mildly expanding. The Chinese authorities are pulling out all the stops to avert an almost inevitable economic slowdown.
Meanwhile across the border, Hong Kong recorded its largest annual decrease in retail trade in October since 2005. The volume of retail sales tumbled 26%. The November number is not expected to be any better. It could drop a further 23%. The “Emperor” continues to fiddle as Hong Kong burns!
Inflation in Indonesia is expected to moderate from 3% in November to 2.6% in December. It would mark the fourth month of declining consumer prices. It could also provide the central bank with some room to cut interest rates to support economic growth.
Inflation in the Philippines appears to be heading in the other direction, though. In November the inflation rate increased from 0.8% to 1.3%. It is expected to rise again in December to 2.2%.
Malaysia will post balance of trade for November. In October, the country’s trade surplus widened unexpectedly to RM 17.3 billion. It was the largest trade surplus since records began in 1970. Malaysia appears to be coping well with the Sino-US trade war.
Singapore will provide a first estimate of its economic growth rate for the fourth quarter. It could show that the republic grew at an annualised rate of 0.8%, which would be slightly faster than in the previous quarter.
Singapore will also report bank lending numbers for November. So, keep an eye on the three Singapore-listed banks, namely, DBS Group (SGX: D05), UOB (SGX: U11) and OCBC (SGX: O39).
And finally, a happy New Year to all of you. On behalf of The Smart Investor team, thank all of you for all your support in what has been a tough end to 2019.
We look forward to officially welcoming you in 2020, as we say goodbye to one decade and prepare ourselves for the next ten years and beyond!
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None of the information in this article can be construed as financial, investment, or other professional advice. It is only intended to provide education. Speak with a professional before making important decisions about your money, your professional life, or even your personal life. Disclosure: David Kuo owns shares in DBS, OCBC and UOB.