Investing.com - Here are the top five things you need to know in financial markets on Monday, Thursday 21:
1. Market focus on confirmation of 3.3% growth
The U.S. is to release final figures on third quarter economic growth at 8:30AM ET (13:30GMT) Thursday.
The data is expected to confirm that the economy expanded by 3.3% in the three months ended September 30, unchanged from a preliminary estimate. It grew by 3.1% in the second quarter.
It’s worthwhile to keep in mind that this is the third reading for the July to September period, making it lagging data. But still, the data will reflect how the economy has been fairing under the Trump administration.
The advanced estimate for fourth quarter GDP will not be released until January 26 and markets are already pricing in assumptions from the impact of just-passed tax reform whose impact is expected to arrive next year.
2. Dollar holds near 2½-week lows ahead of data dump
The dollar held steady neat two-and-a-half week lows against other majors currencies on Thursday, as optimism surrounding U.S. tax reform plans continued to wind down ahead of the Christmas holiday.
Investors in the greenback appeared to also be hold ahead of a data dump set for later in the day.
Apart from the GDP revision, weekly jobless claims and the Philly Fed manufacturing index for December will be among top tier data released at 8:30AM ET (13:30GMT).
At 6:35AM ET (11:35GMT), the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was unchanged at 92.94.
3. BoJ holds steady, Kuroda rules out early exit
The Bank of Japan kept monetary policy steady as expected on Thursday and its governor Haruhiko Kuroda said economic improvements alone would not trigger a withdrawal of stimulus, reassuring markets it will lag well behind its overseas peers in ending crisis-mode easing.
In an 8-1 vote, the BOJ kept its short-term interest rate target at minus 0.1 percent and the 10-year bond yield target around zero percent - wrapping up a year in which the central bank made no change to policy.
"Our most important goal is to achieve our 2% inflation target at the earliest date possible," Kuroda said in the press conference. "We won't raise interest rates just because the economy is improving.
4. Global stocks in holiday mode
Global stocks offered a muted reception on Thursday to the passage of U.S. tax cuts as investors begin to wind down trading activity before the Christmas and New Year holidays.
European bourses saw mixed trade as markets focused on elections in Spain’s Catalonia and investors digested the passage of U.S. tax reform. The benchmark Euro Stoxx 50 traded with slight gains of 0.05% by 6:36AM ET (11:36GMT).
Earlier, Asian shares also closed with mixed signs. China’s Shanghai Composite ended Thursday with gains of 0.38%, while Japan’s Nikkei 225 closed down 0.11%.
Wall Street also pointed to a muted open with trading expected to continue to thin as the holidays neared. At 6:35AM ET (11:35GMT), the blue-chip Dow futures rose by 25 points, or 0.10%, S&P 500 futures gained 5 points, or 0.17%, while the Nasdaq 100 futures inched up 5 points, or 0.07%.
5. Catalonian elections in Spain in focus
European markets and the euro were relatively calm on Thursday as investors watched developments in Spain.
An election in Catalonia, which has become a de facto referendum on its independence movement, was underway in the Spanish autonomous region.
The secession movement has been significantly diminished but the outlook for the regional elections were far from certain with large factions for both remaining in Spain or leaving running head-to-head.
If pro-independence parties gain the victory, the path with be set for future movements towards Catalan independence.
The IBEX 35, the Spanish stock benchmark showed little worries, trading mostly unchanged along with other equity indices in the wider euro area. Likewise, the euro traded flat against the dollar.