📆 Monday, January 8
► Global investors are closely watching US inflation data and big bank earnings to be released later this week. This will help gauge the state of the economy and the Federal Reserve's rate cut trajectory. Additionally, Australian inflation data is expected to provide insights into the Reserve Bank of Australia's policy decisions. Last week's robust US labor market data already decreased rate cut expectations.
► European equity futures edged lower, with the Stoxx 600 index trading 0.45% lower. Eurozone markets already started with slight losses into the week and then saw additional selling post economic data showing retail sales / industrial production remain in contraction territory.
► In the US, equity futures were relatively unchanged but show also signs of more selling. The focus is now on the upcoming US inflation data (Jan 11), expected to show a decrease in the underlying inflation measure. However, our head analyst Robert Lindner, expects that healthy consumer demand / holiday sales and the very strong performance of the equity markets has resulted in a slowdown in US disinflation. US markets also prepare for the start of the earnings season, with key financial institutions like JPMorgan, Bank of America, and Citigroup slated to report their quarterly financial results. The USD also saw more gains against most Group-of-10 currencies.
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