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Economic news: Potential market movers for the week ahead

  • Markets back to normal trading hours
  • US Federal Reserve Chair Powell speaks on Tuesday
  • Latest update on US inflation on Thursday

Monday 09 January

There is a Bank Holiday for Japan today while overnight we have Building Approvals from Australia, and updates on Chinese inflation through both the Consumer Price Index (CPI) and Producer Price Index (PPI). Then there’s Swiss Unemployment, German Industrial Production, the French trade Balance, Italian Unemployment, Eurozone Unemployment and the Eurozone Sentix Investor Confidence Survey. Later we have Canadian Building Permits and US Consumer Credit.

Tuesday 10 January

While there are several economic data releases from both the UK and China which would typically come out today, none have been confirmed at the time of writing. These include the UK’s British Retail Consortium’s Retail Sales Monitor, PPI Input, and PPI Output, along with Chinese M2 Money Supply and New Loans. What has been confirmed is the latest update on French Industrial Production, a speech from US Federal Reserve Chair Jerome Powell and US Wholesale Inventories.

Wednesday 11 January

Overnight sees the release of Australia’s Retail Sales and CPI, along with Japanese Leading Indicators. Then we have Italian Retail Sales, and later there’s US weekly Crude Oil Inventories. Towards the end of the day we can expect Japan’s Bank Lending and Current Account.

Thursday 12 January

The day starts off with Australia’s Trade Balance and the Economy Watchers Sentiment from Japan. Later that morning we have the European Central Bank’s Economic Bulletin.

But the most significant release of the week comes from the US with the latest inflation update in the form of CPI. Last month, Headline CPI, which includes food and energy, rose by 7.1% when compared to the same period last year. This was well below the 7.7% increase seen the previous month, and lower than the 7.3% expected. It also represented a significant decline since the summer when the CPI hit 9.1%. US stock index futures surged higher ahead of the release of the softer-than-expected number, suggesting that the data had been leaked. The S&P 500 soared by around 120 points before pulling back sharply. The following day the Federal Reserve raised rates by 50 basis points, as expected. But there was an unexpectedly hawkish tone to Fed Chair Jerome Powell’s comments in the subsequent press conference which led to further selling across global stock indices. The big question now is whether inflation will continue to moderate, or if it begins to rise again if it becomes embedded in the Services side of the economy.

Rounding off the day we have Weekly Unemployment Claims and the Federal Budget Balance, both from the US.

Friday 13 January

The day starts with the release of UK GDP, Construction Output, Goods Trade Balance, Index of Services, Industrial Production and Manufacturing Production. Then there’s French Final CPI, Italian Industrial Production, Eurozone Industrial Production and the Eurozone Trade Balance. From the US we have Import Prices, Consumer Sentiment and Inflation Expectations. The fourth quarter earnings season kicks off with Delta Air Lines [NYSE:DAL] reporting today, and many big banks next week.

David Morrison is an Analyst with Trade Nation. Trade Nation was set up with the specific remit to help customers realise their trading goals by changing the way they engage with the financial markets. As well as providing full transparency and making sure all customers get a fair deal, Trade Nation is fully regulated. This means customers can be confident they’re getting the trading experience they deserve. 

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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