12.01.25 - Key week ahead

During the coming week, an important set of economic data will be released, alongside the kickoff of earnings season. Wednesday could become a hot day. The big banks like JPMorgan, Citigroup, BlackRock, Goldman Sachs and Wells Fargo are set to report their fourth quarter results. On the same day, new inflation data will be released.
Already on Monday morning, investors will closely watching economic data out of China, including the latest import/export figures followed by a substantial data release on Friday, featuring GDP growth and other critical indicators.

Markets: - (only cryptos are trading over the weekend, sideways in a wide range)

My View: a crucial week for financial markets could be ahead of us. After the hot job report on Friday, the fear of inflation is definitely back and could shake up markets further in the short-term, in case higher inflation should be confirmed and interest rates continue to rise.
Regarding China, the next data set could also give the market a new direction. Chinese stock markets have been underperforming global indices for several years, especially since pandemics. In my view, today, the glass is half full, while investors have rather a pessimistic stance, also with the threat of potential tariffs, several time announced by Trump. A lot of this is already priced in. Therefore, any positive surprise could lift stock prices in that region. At latest during the National People’s Congress in beginning of March, the government will come up with more stimulus package to support the Chinese economy.

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