Company / Analytics

Analytics, 15 January 2024

What will drive the markets this week?

Friday saw U.S. stocks closing with minimal changes, as they fluctuated between modest gains and losses. Mixed bank earnings countered the positive impact of cooler-than-expected inflation data, which had initially raised hopes for potential interest-rate cuts by the Federal Reserve. The Dow gained 0.34% for the week, while the S&P 500 and Nasdaq posted larger increases of 1.84% and 3.09%, respectively. The S&P experienced its most significant weekly percentage rise since mid-December, and the Nasdaq’s gain marked its largest since early November.

In contrast, European shares finished higher on Friday, propelled by a decline in bond yields following soft U.S. data. This fueled expectations of early interest rate cuts by major central banks. Airbus shares stood out, driven by the company’s report of record annual jet orders.

Asian markets faced declines as China reported its first annual drop in exports in seven years.

This week, markets will be closed on Monday, Jan. 15, in observance of Martin Luther King Jr. Day. The day also marks the commencement of the annual World Economic Forum meeting in Davos, Switzerland, bringing together global business and political leaders.

Upon reopening on Tuesday, investors can anticipate a new round of bank earnings, with Morgan Stanley (MS) and Goldman Sachs (GS) leading the week. Various housing-market indicators, such as housing starts and existing home sales, are scheduled for release. Federal Reserve Gov. Christopher Waller and Atlanta Fed President Raphael Bostic are slated to deliver remarks. Throughout the week, market watchers will receive updates on U.S. retail sales, industrial production, and consumer sentiment, along with other economic indicators.

Finally, on Friday, Congress faces a deadline to fund certain U.S. government agencies. While lawmakers reportedly reached a deal by Saturday evening to avoid a partial government shutdown, the confirmation was pending as of Sunday.

Events expected to move the markets this week

Monday, Jan. 15

Tuesday, Jan. 16

Wednesday, Jan. 17

Thursday, Jan. 18

Friday, Jan. 19

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