Investors will see a calm end to an unpredictable, but lucrative year in the last week of 2021. Holiday week may mean fewer trading hours in non-U.S. market and less volume trading across all markets. Do these conditions favor a successful end to the year or are there other possibilities?

Here’s what you need to know to start your week.

1. Santa Rally Watch

Last week’s trading, especially towards the end of the week, gave off a holiday spirit vibe, with the closing Thursday at and many other indices around the world setting recent or year to date high marks. That sets the table for this week and the so-called “Santa rally”, as low volume and no news allow asset prices to follow the path of least resistance, which has so often in recent years been higher. However, it is worth noting that the Omicron news was also announced the previous U.S. holiday weekend. It serves as a reminder to investors that bad news can have a magnifying effect due to irregular trading.

2. Crude Oil Inventories

Amidst a slow data week, investors and traders may do well to keep a focus on Wednesday’s . The on inventory since September rose 4% last week, thanks to relief from the Omicron Covid-19 variant’s severity. At the same time, gasoline inventories rose much more than expected, which is perhaps a sign of slowing fuel demand amid that same Omicron’s spike in the U.S. Industry participants are anticipating a full recovery to in 2022, with to increase supply, and this will be a last check-in before the new year to see whether that story is holding up through the winter.

3. Smatterings of economic and corporate reports

There are a few regular reports coming out this week, including the  on Wednesday, on Thursday, and the out on Thursday. Each report will include a year-end temperature reading that covers different aspects of economy. This includes read-throughs for inflation, economic expansion, and where we stand in the cycle.

Cal-Maine Foods (NASDAQ): This headliner is the highlight of a short earnings reporting schedule. It’s Tuesday, the day after close. This might indicate the cost/inflation of agriculture.

4. Omicron

While holiday season can be disruptive to Covid-19 test patterns, investors and traders will remain a valuable sideshow in determining the severity Omicron variant. Last week’s rally was spurred in part by that Omicron may spread faster than previous Covid-19 variants but also that the risk of hospitalization it poses is significantly lower, whether due to a higher degree of population immunity or the nature of the variant itself.

The two things to watch are whether this initial data gets any more support, and what the impact of people’s and governments’ responses will be on the markets. South Africa, where Omicron was first identified, has already loosened some of the quarantine and testing rules put in place after Omicron’s emergence, and as the tug of war between keeping hospitals from overflowing, not spoiling the holiday season, and keeping people safe continues for governments, it remains to be seen if other governments will follow South Africa’s lead, and if the purported “end of the pandemic” is already priced into markets.

5. China

China returns to the limelight for the final year. This week’s report will come out with the manufacturing number at 49.6, which is a slightly lower activity. The number had been around 50, but China is taking an even harder stand to stop the Omicron variant spreading. This will affect the manufacturing numbers.

China stocks also under surveillance after China published draft rules to ban overseas listings, but that still permit Chinese companies to list in foreign countries. This clarity may be a relief to investors, even though the policy is tighter than it was in the past.

Lastly, Baidu (NASDAQ:) hosts a metaverse conference on Monday, which it calls China’s first. The company also has its own metaverse app.

These are the five things to watch this week. If you’re looking for ideas on what to watch for in the year ahead, check out .

We wish you happy holidays!