Weekly Market Preview
Friday, 3rd of January 2025
Markets are closely watching a series of key economic data releases this week, with a primary focus on European inflation levels. Inflation is projected to remain stable at 2.7% in December, unchanged from the previous month.
At its December meeting, the European Central Bank (ECB) reduced interest rates by 25 basis points, as anticipated. Markets have priced in three additional 25-basis-point cuts this year. However, higher-than-expected inflation could reduce the likelihood of these cuts, potentially impacting market expectations.
Later in the week, attention will shift to the U.S. jobs report for December. According to Bloomberg, the U.S. economy is expected to add 153,000 jobs, down from 227,000 jobs in November. Meanwhile, the unemployment rate is forecasted to remain steady at 4.2%.
U.S. labour market data, along with inflation trends, play a critical role in shaping the Federal Reserve’s interest rate decisions. With U.S. inflation (measured by the Personal Consumption Expenditures Index) holding below 2.5%, Federal Open Market Committee (FOMC) members are likely to focus heavily on labour market performance.
A weaker-than-expected jobs report could signal a softening labour market, prompting markets to price in the possibility of further U.S. interest rate cuts this year.
Monday, 6th of January
Tuesday, 7th of January
Wednesday, 8th of January
Thursday, 9th of January
Friday, 10th of January