Plus500 does not provide CFD services to residents of the United States. Visit our U.S. website at us.plus500.com.

Last Week of December 2024: Central Banks, GDP, PMIs & More

The year is almost over, and with it come the last economic events of 2024 and the first of 2025. From central bank meetings, Gross Domestic Product (GDP), and Purchasing Managers Index (PMI) data. Explore the week ahead in this article:

Hand flipping block 2024 to 2025 text on table

Holiday Break

First, despite the eventful week ahead, it is important to note that the stock market will close on Wednesday, 1 January 2025, on New Year’s Day, and trading will resume on Thursday, 2 January. 

Will Santa Visit the Markets Before the New Year?

Interestingly, while past performance is not indicative of future results, and despite the holiday season nearing its end, markets are still awaiting the much-anticipated Santa Rally. This phenomenon, which typically occurs between Christmas and New Year’s, is marked by a historical rise in stock prices driven by factors such as positive sentiment, increased consumer spending, and other seasonal influences. 

For example, last week, after a solid start, markets ended nearly flat on Thursday but fell sharply on Friday. The final trading session of the week saw all S&P 500 sectors in the red. 

Observing how the markets behave in the final trading days of the year will, therefore, be intriguing.

PMI Releases

This week, PMI, a key measure of the manufacturing sector’s health, is set to be released from various economies, with the main reports being as follows:

  • Monday, 30 December: December’s Chinese Composite PMI, Manufacturing and Non-Manufacturing PMIs. 

  • Tuesday, 31 December: December’s Russian S&P Global Services PMI.

  • Wednesday, 1 January: December’s Judo Bank Australia Manufacturing PMI and S&P Global South Korea Manufacturing PMI. 

  • Thursday, 2 January: December’s S&P Global US PMI and HCOB France, Germany, Italy, and Eurozone PMI.

  • Friday, 3 January: December’s US ISM Manufacturing PMI. (Source: Investing.com)  

It will be interesting to see how these powerful economies have fared this year.

GDP Data 

This week is a pivotal one for the US economy, as GDP data will be released on Wednesday, 1 January. The report can provide crucial insights into the state of the world’s largest economy as we enter the new year. 

According to projections, the report is expected to show a 2% increase in Q4 2024 GDP compared to the previous quarter’s increase of 4.9%.

The report can influence policymaking, in general, and the Federal Reserve rate decision on 30-31 January, in particular. 

Central Bank Decisions

The Bank of Japan (BOJ), the Bank of Canada (BOC), and the European Central Bank (ECB)  will meet this week on Tuesday, Wednesday, and Thursday, respectively. 

It will be interesting to see what these central banks decide, especially given that last week, ECB President Christine Lagarde stated that too many interest rate cuts could harm the economy but will not hinder inflation. As for the BoJ, many market watchers may be looking for signs that the central bank has exited the negative interest rate cycle in the new year. The BOC, on the other hand, is projected to maintain interest rates at 5%. 

Conclusion 

In conclusion, the final days of 2024 and the early days of 2025 promise to be a crucial period for global markets and economies. 

As investors await the potential for a Santa Rally, economic data such as PMI releases and GDP growth will shed light on the health of key economies heading into the new year. Central bank meetings will also be closely watched, with decisions from the Bank of Japan, Bank of Canada, and European Central Bank possibly shaping future policy and market sentiment. 

With the stock market closing for New Year's Day, all eyes will be on the post-holiday trading session as the global economic landscape continues to evolve.

Most recent articles

Related News & Market Insights


Get more from Plus500

Expand your knowledge

Learn insights through informative videos, webinars, articles, and guides with our comprehensive Trading Academy.

Explore our +Insights

Discover what’s trending in and outside of Plus500.


This information is written by Plus500 Ltd. The information is provided for general purposes only, and does not take into account any personal circumstances or objectives. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, if necessary, seek professional advice. No representation or warranty is given as to the accuracy or completeness of this information. It does not constitute financial, investment or other advice on which you can rely. Any references to past performance, historical returns, future projections, and statistical forecasts are no guarantee of future returns or future performance. Plus500 will not be held responsible for any use that may be made of this information and for any consequences that may result from such use. Hence, any person acting based on this information does so at their own discretion. The information has not been prepared in accordance with legal requirements designed to promote the independence of investment research.

Need Help?
24/7 Support