TOP 5 economic news for the week - TeleTrade exclusives

The earnings season is gaining momentum, major central banks are holding their first meetings in 2024, and the PMI data should show how things are going in the global economy at the beginning of the year. All the most interesting things are in our top.

US data

While the slowdown in inflation has increased expectations that the Federal Reserve will start cutting rates this year, some policymakers have abandoned bets on rate cuts. Key US inflation data will be closely monitored on Thursday to get up-to-date information on the future trajectory of interest rates.

On Wednesday, the government will release data on GDP for the fourth quarter, which is expected to be 2.0% after an increase of 4.9% in the previous quarter.

Fed officials will observe the traditional lull period before the upcoming policy meeting on January 30-31.

Revenues are growing

Earnings season is gaining momentum, and investors are eagerly awaiting the results of some major companies, including Netflix, which will report on Tuesday, followed by Tesla on Wednesday, as well as 3M and Intel. The S&P 500 index closed at an all-time high on Friday for the first time in two years, helped by a rally in shares of chip manufacturers and other major technology companies, but may lose momentum if earnings results over the next few weeks do not justify relatively high valuations.

This week also promises to be important for European technologies, as reports from ASML, Logitech and SAP, as well as luxury companies LVMH, will be presented.

Central Bank meetings

The European Central Bank holds its first policy meeting in 2024 on Thursday amid speculation of rate cuts, with markets pricing in five rate cuts this year.

Some politicians say the markets are getting ahead of themselves, and President Christine Lagarde has warned that cutting prices too sharply will not help the bank fight inflation.

The Bank of Japan will conclude its last policy meeting on Tuesday, markets do not expect any changes, but investors expect any indication of a possible rejection of negative interest rates later this year.

The Bank of Canada is expected to keep interest rates at 5% on Wednesday, which will be the fourth meeting in a row.

Business Activity index

Investors are betting heavily on the so-called soft landing of the global economy, along with a rate cut later this year.

Preliminary data on the purchasing managers' index for the eurozone, the UK and the USA published on Wednesday will give an idea of how business activity, which is in the territory of contraction in many countries of the world, persisted at the beginning of the year.

New orders and hiring intentions will be subjected to a thorough analysis, as they are the two most promising components. There is a widespread downward trend in new orders, which is often a sign that firms are preparing for difficult times ahead, which contradicts rosy forecasts in financial markets.

Oil prices

Oil prices fell slightly on Friday, but recorded weekly gains as tensions in the Middle East and disruptions in oil production offset concerns about the Chinese and global economies.

During the week, Brent rose by about 0.5%, while American oil rose by more than 1%.

The International Energy Agency last week raised its global demand forecast for 2024, but its forecast is half that of the OPEC producer group.

Join those who have already discovered the easiest and most profitable way to invest in financial markets. Start earning income from successful professional trading right now!

TeleTrade - We bring together professional traders from all over the world with those who want to repeat their success!