This Week in the Markets: A Global Economic Overview
As we step into the final week of January, the economic calendar is full of critical data points that could sway markets and influence global economic policies.
Monday starts us off with China's NBS Manufacturing and Non-Manufacturing PMI for January, providing early signals about the health of the Chinese economy amidst ongoing global adjustments.
Tuesday will see the release of the ECB Bank Lending Survey, a tool to gauge banking conditions in Europe and potential impacts on monetary policy.
The spotlight intensifies on Wednesday with a slew of crucial data:
- Australia will release its Consumer Price Index for Q4, an essential indicator of inflation that the RBA closely monitors.
- Canada’s central bank will announce its interest rate decision, accompanied by the Monetary Policy Report and a subsequent press conference, which are likely to provide insights into future economic expectations and monetary policy adjustments.
- The day concludes with the U.S. Federal Reserve's interest rate decision and FOMC Press Conference, events highly anticipated for indications on future rate movements amid inflation concerns.
Thursday offers a deep dive into the European economy with preliminary GDP data for Q4 from several key Eurozone countries, setting the stage for assessments of economic health at the start of the new year.
Japan’s Tokyo Consumer Price Index for January will also be released, giving insights into inflation trends within the Tokyo region.
The week wraps up on Friday with key economic indicators from Europe and the U.S.:
- Europe’s CPI data for January will shed light on inflation trends and potential ECB actions.
- The U.S. rounds out the day with its Core Personal Consumption Expenditures Price Index for December, a favoured measure of inflation by the Federal Reserve.
Each piece of data this week has the potential to clarify or complicate the outlook for 2025, providing investors and policymakers alike with crucial information to guide their decisions in the coming months.
