In the new trading week, the punitive tariffs recently announced by Donald Trump on imports from important trading partners are likely to be the main topic of discussion. Following the meetings of the major central banks, the Fed and the ECB, attention should also turn to the official US labour market report. It is also important to keep an eye on the reporting season.
Dow Jones Industrial Average Index
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Donald Trump imposes punitive tariffs on imports from Canada, Mexico and China
The new US President Donald Trump has confirmed the imposition of import tariffs on Mexico, Canada and China from Saturday. Trump referred to the large trade deficits with these countries. In addition, the tariffs could potentially be increased significantly. For goods from Mexico and Canada, 25 percent were estimated and for imports from China ten percent. Tariffs on EU imports are also being discussed, according to reports.
Focus on China data at the start of the week - "JOLTs" and ADP data could be moving
On Monday, the Caxin Purchasing Managers' Index (production) for the Middle Kingdom is likely to be the first exciting event (02:45). In this context, investors are hoping for economic indicators from China.
The consumer price index from the eurozone will follow at 11:00 (11:00). The ISM manufacturing index at 16:00 should attract more attention.
After last Wednesday's Fed meeting, a speech by Raphael Bostic from the Atlanta Fed could also be interesting (18:30).
The so-called JOLTs, which signal job openings in the USA, will be published on Tuesday at 16:00.
In the middle of the week, attention is again likely to focus on important data from China. The equivalent of the Caxin index for the services sector will be published in the night from Tuesday to Wednesday (02:45).
The ADP employment data (14:15) should provide a first appetizer for the release of the official labor market report (Non-Farm Payrolls).
In the afternoon, attention will turn to the ISM index for the non-manufacturing sector (16:00).
Bank of England decides on key interest rate - focus on NFPs on Friday
The Bank of England (BoE) will also decide for the first time this year on the future shape of monetary policy (13:00).
The highlight of the week is likely to be the "NFPs" on Friday at 2:30 pm. Economists expect non-farm payrolls to increase by 256,000 units, after 170,000 new jobs in the previous month.
The separately calculated unemployment rate could remain at 4.1%, unchanged compared to December.
Reporting season as a potential driver - Alphabet and Amazon in focus
In the reporting season, the focus on Tuesday will be on Alphabet and Pfizer. Novo Nordisk and MicroStrategy report on Wednesday and Amazon on Thursday.
