Weekly Markets Diary – 06 January

Written by

OvalX team

Published on

January 11, 2023

Week Ahead: January 9th

The slow corporate and economic news calendar remains for much of this week. However, we do start to move back into gear on Thursday and Friday.

On Thursday, we have the latest US CPI print. Will US inflation continue to ease enough to keep confidence that the Fed’s hawkish stance is working? Historically to get inflation under control often interest rates need to exceed inflation for a period.

CPI is at 7.1%. Interest rates are estimated to reach around 5% by the summer. How fast can CPI get back under interest rates? Once achieved the Fed will have more freedom to pivot. As a result, the CPI number will be keenly watched.

Also on Thursday, the UK consumer will be in focus as a few major consumer facing brands update on Christmas trading. Early indications on the holiday trading period from Next plc last week were positive allowing next to trade up over 6% on the day. Can this trend be continued by the likes of Marks & Spencer and Tesco?

Friday sees several high-profile US banks updating, which also signals the winding into gear of the next US reporting season. How much have higher interest rates supported the likes of JPMorgan and BlackRock and how has the wider financial system coped with the year ending with rates so much higher than at the start of the year. Much needed information will be provided as these financial heavyweights update the market.

Trading Calendar

Monday 9th January

Major Companies Reporting:

US 500:

UK 100:

Germany 40:

Major Economic Data Due:

No Major Data Due

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Tuesday 10th January

Major Companies Reporting:

US 500: