Key takeaways:

• The week ahead is set to be dominated by various central bank meetings, local jobs data, corporate transactions, and AI-related earnings from the US

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Economic Calendar and News

One major event in the agenda is the release of the US Consumer Price Index (CPI) for November. Scheduled for Tuesday US-time, this data is not anticipated to sway the Federal Reserve’s final monetary policy meeting of the year, as the bank is expected to maintain steady interest rates. Investors, however, will pay close attention to the Fed’s ‘dot plot’ for the latest economic forecasts and any hints of rate cuts in 2024.

Australian employment figures are set to be released on Thursday. Observers are predicting a slight increase in the official unemployment rate to 3.8%, signaling a cooling labor market. Additionally, the federal government will unveil the mid-year economic and fiscal outlook on Wednesday, which may underscore the impact of surging interest rates on national debt.

Globally, both the European Central Bank and the Bank of England are holding policy meetings this week, though no changes to interest rates are expected from either institution.

Stocks on watch

This week, the potential merger between Woodside Energy (ASX: WDS) and Santos (ASX: STO) is set to keep the energy sector in the limelight. Speculation is rife that a successful deal could create an $80 billion ASX-listed energy giant. Any merger would face regulatory scrutiny due to their substantial presence in Australian gas markets, but some brokers like Macquarie indicate that a block by ACCC is unlikely. According to MarketWatch, UBS says an $8.20-$8.88 per share Santos offer would be required.

Sigma (ASX: SIG), a pharmaceutical wholesaler, is poised for significant attention as it announces a reverse takeover and listing by Chemist Warehouse. This move could mark a major shift in the pharmacy sector.

The recent Bitcoin rally recorded a nearly 20-month high, up over 170% for the year, that has boosted related stocks like Coinbase (NASDAQ: COIN), Riot Platforms (NASDAQ: RIOT), Marathon Digital (NASDAQ: MARA), and the local Betashares Crypto Innovators ETF (ASX:CRYP). This surge in cryptocurrency is influencing the broader tech and finance sectors also.

In the tech industry, Intel (NASDAQ: INTC) is expected to unveil a new series of semiconductor chips designed to support artificial intelligence (AI) applications, putting it in direct competition with established players like Nvidia and AMD.

Lastly, upcoming tech earnings from Oracle (NASDAQ: ORCL) and Adobe (NASDAQ: ADBE) will provide further insights into the health of the cloud computing and AI segments, two areas that continue to shape the future of technology. Adobe has seen a remarkable surge this year, with its shares climbing over 81%, while Oracle has also performed impressively, slightly exceeding the Nasdaq’s growth with a 38% increase.