Americas

In the US, corporate earnings will remain in the spotlight, with major companies set to report including McDonald’s, Coca-Cola, Cisco Systems, Applied Materials, Vertex Pharmaceuticals, Palo Alto Networks, Shopify, Airbnb, Arista Networks, Gilead Sciences, Kraft Heinz, The Trade Desk, Spotify, Moderna, Ford Motor, Cloudflare, and Pinterest. On the data front, attention will centre on the previously delayed US January jobs report and Consumer Price Index. Nonfarm payrolls are forecast to rise by 70,000, following a 50,000 increase in December, while the unemployment rate is expected to remain unchanged at 4.4%, near the four-year high of 4.5% reached in November. Average hourly earnings are seen rising 0.3% month on month and 3.6% year on year, easing from December’s 3.8%. Inflation data are expected to show consumer prices rising 0.3% month on month in January, matching December’s pace, while core inflation is forecast to accelerate to 0.3% from 0.2%. Additional releases include December retail sales, projected to increase by 0.5%, and January existing home sales, which are expected to ease to an annualized rate of 4.25 million from 4.35 million. Markets will also monitor the fourth-quarter Employment Cost Index, December foreign trade prices, November business inventories, and January’s Budget Statement. Monetary policy will also be closely watched, with speeches from several Federal Reserve officials expected to provide fresh guidance on the outlook for interest rates. Elsewhere in America, investors will be watching inflation data from Mexico, alongside updated inflation and retail sales figures from Brazil.

US Congress, Washington DC

Europe

It will be a busy week in the UK, with a slate of key economic indicators set to provide an update on the health of the British economy. UK GDP is expected to have expanded by 0.2% in Q4, slightly faster than the 0.1% growth recorded in Q3. Industrial production is seen stalling after a 1.1% surge in December, alongside releases of trade figures and construction output data. Elsewhere, the second estimate of Eurozone GDP is due after the preliminary reading showed the economy grew by 0.3%, the same as in Q3. Employment is expected to have risen by 0.1%, following a 0.2% increase previously. A heavy data calendar is also scheduled across Europe, including wholesale prices in Germany, final inflation figures in Spain, the unemployment rate in France, GDP and inflation data in Norway, inflation figures in Denmark, industrial production and retail sales in Turkey, and GDP data in Poland. In Russia, the central bank is widely expected to keep the key interest rate unchanged at 16%, even as inflation accelerated to 6.4% in January from 5.6% in the previous month.

Regent Street, London

Asia Pacific

In China, the focus will turn to inflation data, with headline CPI expected to ease to 0.4% in January from a near three-year high of 0.8% in December. The January house price index is also due and is likely to show a 31st consecutive monthly decline, while credit indicators may also be released. In Japan, investors will assess December wage data, with nominal pay growth forecast to accelerate to 3% from 0.5%. Other key releases include the current account balance, producer prices, and machine tool orders. On the political front, markets will also evaluate the outcome of the snap election, with polls projecting a dominant Lower House victory for the ruling coalition led by Prime Minister Sanae Takaichi. In India, markets will be watching January inflation data. Australia is set for a busy data week, with releases including household spending, consumer and business confidence, final building approvals, home loans, and consumer inflation expectations. Elsewhere in the region, investors will monitor trade data from Taiwan, unemployment figures from South Korea and Malaysia, GDP data from Malaysia, and PMI reports from New Zealand.

Tokyo Station, Japan