January 27, 2023

Back to normal or the first week of a surprising year

LQDFXperts Features | Back to normal or the first week of a surprising year

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It is back to normal for global markets in the first macro-packed week of a year, where nobody can predict what holds for investors.

As the history books closed in 2022, investors may recoil at some of the records that markets set. The economy faced ups, downs, and turns in directions nobody would expect in 2022.

Inflation and rising interest rates will still weigh heavily on the capital markets. There are sure to be more market-moving elements in the mix that will challenge investing strategies. 

Investors will get their first insight into the central bank thinking later this week when the Federal Reserve releases the minutes from its December policy meeting.

All eyes will be on a raft of data on the US jobs market over the coming week.

This week’s U.S. payroll data is expected to show the labour market remains tight. Markets expect that the US economy added 200 thousand jobs in December versus 263 thousand in November.

In addition, EU consumer prices could show some slowdown in inflation as energy prices ease.

Back to normal – US Jobs data and PMIs in focus

This week, purchasing managers indexes (PMIs) will be in focus. 

On Monday, a batch of surveys showed that China’s factory activity shrank at the sharpest pace in nearly three years as COVID infections swept through production lines.

Ιnvestors will be waiting on the release of final readings for S&P Global’s PMIs for euro area manufacturing and services for December on Tuesday and Wednesday.

Markets will be waiting on the latest factory and services Purchasing Managers’ Indices from the Institute for Supply Management on Wednesday and Friday, respectively. 

In the UK, equivalent PMI results are due on Tuesday and Thursday.

On Friday, Eurostat will provide a first look at euro area consumer prices at the end of 2022.

Key among job reports, as always, will also be Friday’s US monthly non-farm payrolls report.

Economic events to follow:  

Tuesday, 3rd of January

EUR- Unemployment Rate (Germany-DEC)

GBP- Manufacturing PMI Final (DEC)

EUR- Inflation Rate (Germany -DEC)

CAD- Global Manufacturing PMI (DEC)

USD- S&P Global Manufacturing PMI (DEC)

Wednesday, 4th of January  

ISM Manufacturing PMI (DEC)

FOMC Minutes

Thursday, 5th of January 

CNH- Composite PMI (DEC)

JPY- Consumer Confidence (DEC)

GBP- Global Services PMI Final (DEC) 

USD- ADP Employment Change (DEC)

USD- Services PMI Final (DEC)

Fed Bostic Speech

Fed Bullard Speech

Friday, 6th of January 

EUR- Retail Sales (NOV)

Consumer Confidence (DEC)

Inflation Rate Flash (DEC)

CAD- Unemployment Rate (DEC)

USD- Non-Farm Payrolls (DEC)

Unemployment Rate (DEC)

ISM Non-Manufacturing PMI (DEC)

For more market events, watch our Economic Calendar

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*PLEASE NOTE The information above is not investment advice.