The S&P is poised for a 0.5% gain this week, marking the culmination of the final full trading week of the year. As we reflect on 2023's impact on traders and investors, this gain, while appearing modest for a "Santa rally," signifies the eighth consecutive week of positive momentum—an achievement not seen since late 2017. Unprecedented in the lead-up to the festive market boost, this extended run contrasts with the previous record of a five-week stretch in 2019.

In the realm of precious metals, gold prices surged to their highest point in almost three weeks on Friday. This rise was attributed to a decline in the dollar and bond yields ahead of crucial U.S. inflation data.

Europe
Turning our attention to Europe, concerns of a winter gas shortage for the second consecutive year have yet to materialize. While a shortage remains elusive, consumers are likely to grapple with persistently elevated gas rates. Moody's research in November 2023 revealed that the EU boasted record-high gas stocks of approximately 97.5%, minimizing the risk of energy shortages this winter and positioning the region strongly for the upcoming cold season.

America
In America, the spotlight is on the eagerly anticipated inflation numbers slated for release later on Friday. While these figures may add a touch of sparkle to this year's Santa rally, they are not expected to substantially alter the prevailing sentiment that the Federal Reserve could trim interest rates to a range of 3.50-3.75% by the end of the coming year, down from the current 5.25-5.50%.