Talking Points:
• Average monthly performance indicates S&P 500 to have a “Santa-Claus” rally
• There is a break from the traditional holiday period, make sure to consider bigger themes
• ECB’s Draghi to speak, BOE quarterly inflation report and US jobs data to come
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Looking back at monthly averages, the S&P 500 traditionally experiences a “Santa-Claus” rally in the last few months of a year. This year may be different however, meaning we need to make sure to think about event risk and take into consideration the context of bigger themes. ECB President Mario Draghi will present a speech later today where traders will look for his views on the possibility for additional stimulus in December. Separately, the BOE quarterly inflation report might give a better picture on whether or not the central bank will hike rates in early or late 2016. Last but not least, investors will consider the case for a Fed rate hike next month as US employment figures cross the wires.
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