The new trading week is likely to be dominated by the inauguration of the new US President. The World Economic Forum in Davos could also provide fresh impetus. From the perspective of the economic data calendar, there are fewer highlights compared to the previous week. However, the US reporting season that has just begun has the potential to provide movement at certain points.
Wall Street remains closed on Monday due to the holiday - All eyes on Donald Trump
On Monday, the stock exchange doors on Wall Street will be closed for the Martin Luther King Day holiday.
However, what future US President Donald Trump initiates in his first hours in office is likely to be important. Investors are particularly concerned about the punitive tariffs announced by Trump on both Chinese and European imports into the US.
Stimulus from the World Economic Forum in Davos conceivable - monetary policy likely to remain an issue
The annual World Economic Forum in Davos, which takes place from January 20 to 24 in the Swiss Alpine resort, is always likely to attract attention. Numerous heads of government and entrepreneurs are expected to attend. It is planned that the US President will take part in the meeting on Thursday via video link.
Despite the inauguration and the World Economic Forum, investors are likely to continue to rack their brains over the future shape of US monetary policy. In the past trading week, core inflation surprisingly signaled a decline, which kept interest rate cut fantasies alive overall. Even though no interest rate cut is expected at the Fed's first meeting of the new year at the end of January (29 January), market participants are hoping that the US monetary authority will continue its cycle of interest rate cuts in 2025. The interest rate band currently stands at 4.25 to 4.50 percent.
Initial claims for US unemployment benefits and purchasing managers round off the trading week - US companies publish figures
On Thursday, it is usually important to keep an eye on initial claims for US unemployment benefits (14:30).
Various purchasing managers are in focus for the last trading day (15:45). In addition to the overall S&P Global index, the purchasing managers for the manufacturing services sectors will be in the spotlight.
The current reporting season could always cause a stir. On Tuesday, for example, Netflix's figures are likely to attract attention. Johnson & Johnson and Procter & Gamble will report in the middle of the week. On Friday, for example, the figures from American Express will be examined.
