As we get further into the new year, financial markets have been propped up by improving risk appetite, as investors begin their own pivot in favour of less aggressive monetary from global central banks. Equity markets, especially indices in Europe, have risen strongly despite the ongoing economic and geopolitical concerns.
Last week’s US inflation data renewed hope for an extended move down towards 2% inflation eventually. This has ensured speculators continue to wage bets in favour of a successful outcome for the Federal Reserve. This week sees US retail sales data for December released. Another drop is expected which would suggest the recent rate rises are having a impact.
Elsewhere, the World Economic Forum will be taking place in Davos, China sees a deluge of data released, company earnings reports will continue, and the Bank of Japan will make a monetary policy announcement.
Have a good week.
Written by Viv Savani. 7:22am, January 16th 2023
The details expressed in this market report are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Cornhill International Payments limited accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the above information.