In addition to important US inflation data, the start of the reporting season in the United States by the major US banks is likely to be particularly interesting. Against this backdrop, investors should tend to keep their powder dry in the run-up. Last but not least, Donald Trump's approaching entry into the White House should cast its shadow. The Republican's term of office begins next Monday.
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German economy shrinks by 0.2 percent in 2024 - second time in a row
It became public this Wednesday morning that the German economy is expected to have contracted by 0.1% in the final quarter of 2024 compared to the previous quarter, as announced by the Federal Statistical Office. However, the estimate is based on an "incomplete database" and is therefore subject to even greater uncertainty, it said.
In 2024, gross domestic product (GDP) fell by 0.2% compared to the previous year, the second time in a row. In 2023, GDP had fallen by 0.3%.
US consumer prices could pick up again - investors fear clouding of interest rate cut fantasies
Investors will be focusing on US consumer prices at 14:30 this afternoon, which could provide information on the future shape of monetary policy in the United States. According to the latest estimates, economists expect an inflation rate (including energy and food) of 2.9% compared to the same month last year, after 2.7% in November.
A level of 3.3% is expected for the core rate in the same period and therefore no change. This figure excludes the volatile drivers of energy and food and is considered to be decisive for the US Federal Reserve (Fed) with regard to its assessment of inflation.
German inflation, US retail data and China stocks in focus
The final inflation rates for the Federal Republic of Germany are also likely to provide impetus on Thursday (08:00). US retail sales (14:30) are also worth watching. This data should provide an indication of the health of the economy.
Important economic data from China could provide important guidance for trading on the last trading day of the week in the night from Thursday to Friday. In addition to retail sales, gross domestic product (GDP) and fresh data on industrial production will be published.
Investors should continue to eagerly await Trump's inauguration. So far, it remains unclear whether and to what extent the Republican will impose punitive tariffs on China and the eurozone.
Major US banks kick off reporting season - JPMorgan and Goldman Sachs in focus
JPMorgan, Goldman Sachs, Citigroup and Wells Fargo are opening their books today, Wednesday.
Thursday will be dominated by the publication of Bank of America and Morgan Stanley's figures.
