Tuesday brings two important events:
- BOJ scheduled interest rate decision. Unlikely to be any change with the Japanese election now underway.
- Euro zone finance ministers & IMF Managing Director Christine Lagarde meet to discuss Greece debt. A decision is expected to be reached, but there are tensions re timing the target of reducing Greece’s debt to 120 percent of GDP … with 2020 is the IMF’s preferred option, and 2022 the preferred option of the Eurogroup Finance Ministers. Two years, or not two years … This is the more obvious event risk early in the week.
Thursday brings Thanksgiving holidays in North America. For turkeys, big event risk. But for markets… ?
Question arises: will market participants be happy to take on risk going into a nearly 4-day holiday in Nth. America? Equity markets are looking positive as the week opens, after soothing comments on the Fiscal Cliff on Friday and a reasonable showing from the indices … but how will the market face a 4-day holiday? Event risk here is for a risk off move into Thursday.
