The holidays are on the doorstep, making the coming days some of the last for shoppers who want to order items online. Office holiday parties and festive decorations serve as an ever-present reminder that holiday vacations are nearing and that 2015 is nearly over.
This week also marks one of the last major trading weeks of the year as the holiday season approaches and traders take vacation around upcoming market closures. As 2015 draws to an end, investors are looking for any indication of what to expect in the coming year. In recent weeks, markets have seen a great deal of volatility, as commodities continue to decline and uncertainty about the global economy remained a burden on markets. Many are hoping that the market's lows are firmly in the rearview mirror, but others caution that upcoming market events could create an opportunity for further declines.
In any case, this week is expected it be an important one for share markets around the world. From earnings reports to highly anticipated central banking moves, here's a look at six things to keep an eye on this week.
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Federal Reserve Meeting
The highly anticipated Federal Reserve December meeting is finally here. This week, the U.S. central bank will hold its two-day policy meeting, which is expected to conclude with a move to raise interest rates.
The rate decision will be announced on Wednesday, December 17 at the close of the meeting, and many are expecting to see share markets take a hit should the bank meet expectations and raise interest rates. The bank has kept interest rates close to zero for almost a decade, so raising them without causing a meltdown will be a difficult undertaking; however, the bank says that economic indicators from the United States point to strength in the economy and that U.S. markets will be able to withstand the fallout a rate hike may cause.
While the hike itself is at the forefront of investors' minds, the bank's policy statement will also be closely watched, as it will provide clues as to where the bank plans to go in the New Year. If no rate hike is announced, investors will be sure to scour the policy statement for clues about when the increase is coming. However, if the bank does raise rates, the policy statement is expected to yield clues about the pace of future rate hikes as the bank attempts to bring monetary policy back to normal.
Many believe that this information will move markets more than the hike itself, as the bank has promised to raise interest rates slowly so as not to disrupt the economy.
The Bank Of Japan
While the Federal Reserve will steal the spotlight when it comes to economic events this week, the Bank of Japan is also holding its policy meeting this week. Scheduled for Friday, December 18, this meeting and the economic data leading up to it will be important for investors, as Japan's economy has been struggling to regain momentum so far this year. Many are concerned about how that could affect other nations around the globe.
So far, the bank has adopted a "wait-and-see" in order to keep a close eye on energy prices. Earlier this year, many were calling for BOJ Governor Haruhiko Kuroda to increase the bank's asset purchase program, but have since eased off on those demands in the wake of sliding energy prices. At this Friday's meeting, the bank is expected keep its policies unchanged, though the bank's policy statement may provide some insight as to where the bank sees the Japanese economy heading in the coming year.
'Star Wars: The Force Awakens'
This week, the Star Wars franchise is due to release its hotly anticipated new film, "Star Wars: The Force Awakens." The film is expected to take Walt Disney Co (NYSE: DIS) into the number one spot for U.S. releases, currently being held by Comcast Corporation (NASDAQ: CMCSA) following last summer's release of "Jurassic World."
The Star Wars film has a lot to live up to, as companies like Mattel, Inc. (NASDAQ: MAT) have already started selling merchandise to eager fans. Disney is hoping the film will do more than bring people out to the movies; the company is a Star Wars themed attraction for its theme parks in order to capitalize on the growing buzz around the movies.
Adding Star Wars to its theme parks is expected to cost Disney more than $2 billion; however, many believe that even if the new film is underwhelming, the new attraction will revitalize the company's U.S. locations, which are in need of some attention after years of spending on international expansion.
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The Logistics Sector: Highlight On FedEx
This could be a big week for FedEx Corporation (NYSE: FDX), as the firm is set to release its second-quarter results on Wednesday. Analysts are expecting the firm to announce $2.53 earnings per share and $12.46 billion in revenue. At the moment, logistics firms like FedEx and United Parcel Service, Inc. (NYSE: UPS) are in the spotlight due to reports of heavier than usual holiday traffic. The surge in online shoppers has many worried about whether their parcels will arrive in time for the holidays.
The rise in popularity of e-commerce has presented firms like FedEx with a great deal of extra business, but the competing offers of fast, low-cost shipping could threaten the logistics industry. E-commerce giants like Amazon.com, Inc. (NASDAQ: AMZN) have already begun thinking up ways to create their own delivery services and cut out the likes of FedEx and UPS.
Many expect FedEx to address this problem on its earnings call this week, especially since the firm has begun to roll out new offerings around the world like "" which allows customers to pick up their packages at a designated time and place, in order to streamline the process and cut down on costs.
Donald Trump
Presidential hopeful Donald Trump made waves last week as he defended his proposal to ban Muslims from entering the United States. While the idea was rejected by the vast majority of Americans, a poll showed that four in 10 Republicans support the ban – something that political commentators say has allowed him to continue despite his campaign despite the backlash.
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So far, Trump has been the star of the 2016 presidential campaigns, as his outlandish remarks and controversial statements have created a great deal of debate among voters.
This week, the businessman-turned-politician is expected to continue ruffling feathers, as he and his supporters defend his place in the race against critics who say such flamboyant remarks should disqualify him as a candidate for president. Trump is also under fire from his own political party; many in the GOP have called for him to be kicked off the ballot. Many believe that despite his promises to bow out if he is not successful as a GOP candidate, Trump will run as an independent if the party ousts him.
SpaceX
Elon Musk's SpaceX will also be in the spotlight this week, as the company prepares for the test launch of a new version of its Falcon 9 rocket. The company's earlier model of the same rocket exploded upon launching back in June when it was carrying supplies to the International Space Station, so this week's test will be a good indicator as to whether the rocket is feasible to give the mission another go. If all goes well, the rocket is expected to be in a mission to launch ORBCOMM satellites into orbit just three days later.
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The mission will be closely watched, as SpaceX is hoping to land the Falcon 9 on solid ground. A successful landing would mark the first time the firm has been able to successfully land the rocket after a mission. Being able to reuse rockets would be a huge step forward for SpaceX, which has said this will be a major part of the company's long-term business model, making space travel significantly cheaper and more available to private firms and individuals.
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