As many countries return from an extended holiday break, announcements remain few and far between, but many risks still remain for markets.

The announcements set for release tonight are mainly from the US. This information includes: Building Permits, Housing Starts, Capacity Utilisation Rate and Industrial Production. Meanwhile, Canada is publishing Foreign Securities Purchases data.

A lot of volatility due to world events is expected to shake markets. There were a lot of political developments over the weekend as well as some escalating situations, while there are events in the near future which could all make for a tumultuous week.

Military Action – The escalation of threats made between the US and North Korea is making some people nervous. Is it all talk and bravado? North Korea generally likes to talk tough when it comes to military action. Have what we seen lately just an extension of that? The US has also stepped up it’s rhetoric, sounding more provocative towards North Korea.

The armed conflict in Syria is still ongoing, with China and Russia also voicing their concerns over US military action.

Political Upheaval – Over the weekend, the people of Turkey went to the polls to vote on constitutional reforms for the Turkish parliament. The President wanted to effectively give himself more power. He won the election by a 1% majority, however opposition parties have already disputed the outcome and are threatening to take the matter to the courts. This also has implications for Europe. This is because Turkey is trying to join the EU. This latest event may well scuttle the idea as the leaders of the EU were against constitutional change. 

The French Presidential election is also taking place on Sunday. Tensions are rising as political ideologies clash as we get closer. The election isn’t necessarily over on Sunday, such is the French electoral system. We may not know for over a week who the new leader will be.