Unless you’ve been living under a rock, or perhaps cut yourself off from the world since Donald Trump’s election, you’ll be well aware that financial markets globally have been undertaking an almighty rally, nowhere more so than Trump’s United States. Wall Street has closed at all-time record highs for four simultaneous days already this week and are aiming for a fifth tonight, prompting many market commentators on outlets such as CNBC to begin to wonder when, not if, the Dow Jones will reach the hallowed 20,000 level

An important question to ask in the midst of the rally is who have been the biggest benefactors of this latest round of the Trump rally? It’s that old cornerstone of financial markets, the Banks.

US stalwarts such as Goldman Sachs and JP Morgan have been leading the charge stateside, the former’s share price advancing 34% since the US election, whilst in the UK Barclays has recovered from Brexit in astonishing fashion, with its share price having this week reached 100% higher than it was from its lows on June 23. Elsewhere Lloyds’ share price has increased 20% since Brexit, also reaching its highest level since June 23 just this Thursday. Is there room for Lloyds to improve even further as we head into the new year?

Maybe so, as next week marks another two pivotal market events that could have a huge bearing on the Financial sector heading into 2017.

The most important event for global markets is the meeting of the US Federal Reserve’s monetary policy setting committee, the FOMC, on Wednesday evening, where Chair Janet Yellen and her colleagues will be contemplating raising US interest rates for the first time in 2016. Currently, futures markets put the probability at 100%, however there is a chance the more tentative investor might not have priced this in yet.

What does this mean?

A raising of interest rates is likely to see the US Dollar rally against its peers as investors buy US sovereign debt at more attractive rates. The rallying greenback since Brexit has so far led not just the Dow to post all-time highs, but also the UK 100 in October to its highest ever level boosted by a weak Pound. If futures prices are correct, and we see an interest rate hike, could a fresh high on the UK Index be on the cards in early 2017?

The following day, Thursday, the Bank of England’s Monetary Policy Committee will also meet to discuss the UK’s policy as we head into 2017. Having cut rates in the aftermath of Brexit, could another rate cut be in the offing, offering even cheaper money to the banks? Or with inflationary pressures mounting, might Mark Carney et al. decide to stay put for now and see how the rally plays out?

All this before even mentioning the accustomed Santa Rally that’s taking hold of markets in December, which historically adds 3% to the UK 100 over the mid-November to December period, and has in fact done so already. The end of 2016 is providing a fitting end to an astonishing year, so don’t miss out!

How will you find out about these crucial events? Do you have a reliable information source to update you on their outcomes? Could you miss out on a key trade because of misinformation or not hearing fast enough? Why not sign up to receive Accendo Markets’ research offering to make sure you are kept updated on-time and in-time, not just some time to make the most of the exciting week ahead.

Suni Dhanjal, Senior Trader, 9 December