Market Commentary Week Of December 4th

Dated: 12/07/2017

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Dec 04, 2017

Mortgage Rates increased into month-end last week before dropping on Friday with the tax bill being the main focus for markets all week.

The week ahead will have plenty of market data for markets to digest, with Friday’s Non-Farm payroll and Employment situation report set to be the main event of the week.  This payroll report will be the last one ahead of next week’s final FOMC meeting of 2017, so it will be the last significant report Fed Officials see before Janet Yellen’s last meeting as Fed Chair.  The Fed is widely expected to increase rates at this meeting, with Fed Funds futures trading at 98% probability of a hike.  While the new Fed Chair Jerome Powell is considered to be more hawkish than Yellen, he is also seen as the closest to her in terms of policy than any of the other candidates considered.  The next expected increase after next week will be in March, with Fed Funds futures trading at a 65% probability of a hike at that meeting.  In the meantime, markets will continue to focus on events on Capitol Hill, with tax policy being a major market driver in the near term.
Economic Calendar for the week of 12/04/2017 to 12/08/2017:

Monday: Factory Orders, Durable Goods Orders, Cap Goods Orders

Tuesday: Trade Balance

Wednesday: MBA Mortgage Applications, ADP Employment Survey

Thursday: Initial Jobless Claims, Continuing Claims

Friday:Non-Farm Payrolls Report, Unemployment Rate, Wholesale Inventories, U of M Consumer Sentiment

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