What Could Make Markets Decline in 2026? (Three Events)
What’s in Today’s Report:
- What Could Make Markets Decline in 2026? (Three Events)
- U.S. Composite PMI Commentary Notes “Cracks in the Economy”
U.S. futures and global markets are lower as traders digest the latest rally to all-time highs, weighing an uptick in geopolitical tensions in Asia against Goldilocks economic data out of the EU overnight.
Economically, the German Unemployment Rate was unchanged at 6.3% in November, as expected, while the Eurozone Core HICP (CPI equivalent) favorably fell to 2.3% vs. (E) 2.4% which has invited a bid into global bond markets.
Looking into today’s session, we will get the first look at important December labor market data in the U.S. via the ADP Employment Report (E: 47K) ahead of the bell and JOLTS (E: 7.65MM) shortly after the open.
Additionally, the ISM Services PMI (E: 52.2) will be an important release to watch after the open, along with Factory Orders data (E: -1.2%) while there is one Fed official scheduled to speak mid-day: Bowman (11:30 a.m. ET).
Finally, there is a 4-Month Treasury Bill auction at 11:30 a.m. ET that will offer a fresh look at bond traders’ assessment of the morning’s flurry of U.S. economic data and subsequent impact on Fed policy expectations (the stronger the demand the better).
