In the week ahead, markets will be tested by a fresh batch of economic news and will be dominated by the debate over whether the dollar’s behaviour signals the beginning of a turn for the greenback.

In the UK, on Tuesday we have industrial production data, as well as manufacturing data being released and details on German industrial production. Also released is Nationwide Consumer confidence data. On Wednesday we have the NIESR GDP Estimates for November and the Pre-Budget Report, and details of the visible trade balance.  On Thursday, it is the Bank of England rate decision, and details of the asset purchase target. On Friday it is PPI Output data.

In the US, the data calendar is heaviest at the end of the coming week. Today is consumer credit; Tuesday has the NFIB small business survey, and Wednesday is wholesale trade. On Thursday, weekly jobless claims are released, as is international trade and the federal budget. Retail sales for November, import prices, consumer sentiment and business inventories are reported Friday.

The UK market and the European markets have opened down about 0.7%. US futures markets are pointing to a slightly negative start to trading with the Dow opening down 26 points.

© Brooks Macdonald Asset Management 2009

Sources: Reuters: BBC, Bloomberg, Lawshare, Deutsche Bank (db), Proquote, Financial Times, Wall Street Journal, CLSA, Sharescope, Market News, Capital Economics, CNBC, Wikipedia.

Please note this report provides a guide to some of the relevant areas that individual investors should consider discussing with an authorised adviser in relation to their specific circumstances, it does not constitute individual advice. As a result no action should be taken or refrained from being taken as a result of its content.