The upcoming week is poised to be defined by critical decisions on interest rates from various central banks, the release of preliminary Purchasing Managers' Index (PMI) data from the world's major economies, and the unveiling of the fourth-quarter GDP figures for the United States. Additionally, investors will closely monitor the earnings reports of major corporations on Wall Street.
Monday
On Monday, January 22, all eyes will be on the People's Bank of China as it is anticipated to announce its decision on the annual one-year loan prime rate (LPR). Market expectations suggest that the rate will be maintained at 3.45%, a level in effect since the last reduction in August 2023.
Tuesday
Moving on to Tuesday, January 23, the focal point in the macroeconomic calendar is the Bank of Japan's decision on interest rates. While speculation has persisted about the BOJ gearing up for its first rate hike since 2007, no surprises are expected in the decision regarding the continuation of ultra-loose monetary policy with negative rates.
Investors will also be keen on Japan's Consumer Price Index (CPI), which decelerated to 2.6% year-on-year in December. Additionally, the Richmond Fed Index will be released in the afternoon, and the evening will bring data on the weekly changes in oil inventories according to the American Petroleum Institute (API).
Earnings results will be unveiled by notable companies such as Johnson & Johnson, Procter & Gamble, GE, and Netflix.
Wednesday
Wednesday, January 24, brings the decision of the Bank of Canada, where the expectation is for the main interest rate to be maintained at 5%. Investors will also be attentive to the preliminary PMI data from major economies, including Germany, the Eurozone, the UK, Japan, and the USA.
Overnight, attention will shift to data on Japanese trade for December.
In the USA, the Energy Information Administration (EIA) will publish another report on fuel inventories, and results on Wall Street will be presented by Tesla, ASML, IBM, and others.
Thursday
Thursday, January 25, will feature the announcement of interest rate decisions by the Central Bank of Norway, followed by the Central Bank of Turkey and the European Central Bank (ECB). A press conference led by ECB President Lagarde will follow half an hour later.
Noteworthy macroeconomic data includes the reading of the German ifo index, a crucial predictor of future economic conditions in Western Europe. At 14:30 (GMT), the pace of the US economy's growth in the fourth quarter will be revealed, along with the weekly number of unemployment benefit claims in the USA.
Additionally, estimates for durable goods orders, foreign trade, and new home sales, all pertaining to the USA, will be released.
Financial results from companies like Visa and Intel will also be disclosed.
Friday
Finally, on Friday, January 26, investors can expect the continuation of data releases from the United States, including a report on the incomes and expenditures of Americans and data on the Consumer Expenditure Price Index (PCE).
In Europe, the ECB will release M3 money supply data for December. On Wall Street, results will be presented by companies such as American Express and several smaller regional banks.
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