The wheels of motion begin to turn again as the first week of a new year commences, and the United States economic calendar starts to fill. Labor markets will be in focus this week with lots of employment data, but the first full week of the year could shake markets out of holiday slumber as investors react to rapid developments in Venezuela. The US conducted a military operation in Venezuela over the weekend, capturing President Nicolás Maduro and his wife as explosions were reported in Caracas and the surrounding areas. US President Trump claimed that his country will now run the oil industry in Venezuela, which has resulted in a fall in energy prices, while crypto markets remain resilient for now.
“Volatility continues to be the norm as macroeconomic headwinds continue to shift rapidly,” commented the Kobeissi Letter. US and European stock markets will continue to digest the events from the weekend when they open, but crypto assets have moved marginally higher on Monday morning in Asia. Tuesday will see December’s ISM Manufacturing PMI data, which measures the health of the manufacturing sector in the US. However, the main focus of the week will be on labor data with December’s ADP Nonfarm Employment report and November’s JOLTS Job Openings data due on Wednesday.
The Federal Reserve cut rates three times last year due to a weakening labor market, so this data may influence the central bank’s next move. Friday will see the December Jobs Report and the Consumer Sentiment data, adding more fuel to the economic fire. Total market capitalization is up almost 2% on the day to reach $3.25 trillion, its highest level since December 10. Bitcoin led the gains, surging above $93,000 in Monday morning Asian trading, but it had fallen back slightly in the hours that followed.
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