Hard on the heels of China reporting its weakest economic growth in 24 years, the International Monetary Fund has forecast a further slide in GDP this year and in 2016 for Australia’s biggest trading partner.

On the eve of China revealing is worst quarterly GDP growth figures in 24 years later today, the country’s sharemarket has sold off heavily after regulators cracked down on the popular margin trading activities of some of the countries major brokers.

It’s been a tough Christmas New Year period for the oil and gas sector – following on from the tough past year for miners.

The local sharemarket is looking at a 1% plus jump at the opening this morning after Wall Street ended last week on an up note.

A slightly calmer ending to the week for commodities with oil showing signs of steadying, gold and sliver were stronger overall, copper gained and other metals were supported by investors.

The next few weeks will see an outbreak of ‘earnings honesty’ as companies large and small try to soften the blow to investor confidence from lower revenue growth, weak or lower earnings and lower or stalled dividends, as well as big asset impairments in the energy and mining sectors, and in other sectors, such as the broadcast and print media and perhaps retailing.

As our banks head into 2015, they have a new cost investors might not be aware of – more than $400 million a year for what’s effectively an insurance premium charged by the Reserve Bank as part of a unique liquidity backstop for the banks and the financial system in the event of a repeat of funding freeze seen in the GFC in the last quarter of 2008.

The Janet Yellen-inspired Santa Rally on world stockmarkets continues. Remember how markets, led by Wall Street swooned and fretted at every mention of the US Federal Reserve slowing its huge easing program – Taper Tantrums was the description given by nervy investors, frightened the central bank would be taking the punch bowl away.

The most important indicators from the sluggish Chinese economy, so far as the Reserve Bank is concerned, are the monthly reports on house price movements and house sales.

Watch for a big pop in the ASX 200 this morning after the US Fed meeting changed its outlook on interest rates to bring forward a rise into mid-2015.

Markets are becoming more febrile as the oil price plunge rattles confidence around the world – and Russia is emerging as a major concern.

The second major deal in the current slide in oil prices surfaced at the weekend , it’s a biggie – Repsol, the Spanish oil giant is planning to offer up $US8 billion for the Canadian independent, Talisman. With debt, any bid for Talisman, one of Canada’s biggest oil and gas independents, could be worth in excess of $US11 billion.

There’ll be renewed confirmation this week that the Chinese economy continues to slow.

In any week, the final meeting of the year of the US Fed’s key policymaking committee would normally dominate events, but this week global markets will be more concerned with the slide in oil prices and the way they are sending shares and bond prices lower.

Another miserable Friday has set up Asian markets for a nasty sell-off today, which will be complicated in Australia by the release of the mid-year economic statement from the embattled Abbott Government just after midday.

It was the fastest pace of jobs growth since March 2012, but also the highest unemployment rate for 12 years – two readings from the November jobs data which confounded some of those looking for rate cuts and sent the Aussie dollar higher, as well as helping halt a worrying sell off on the ASX yesterday morning.

Another rough day on financial markets can be expected today after US oil prices fell under $US60 a barrel for the first time this morning, US time.

Our market is heading for a nasty 50 point fall at the open Thursday after commodities, led by oil, sold off and markets in Europe and especially the US fell sharply.

The New Zealand Reserve Bank has again left its key interest rate on hold as the economy continues to burble along in a comforting burst of low inflation growth.

Inflationary pressures in China are intensifying as economic activity slows.