Following Donald Trump's official inauguration and the World Economic Forum in Davos, numerous potential drivers await investors in the new trading week. In addition to the US Federal Reserve meeting, attention is likely to focus in particular on the ongoing reporting season.
Trump threatens punitive tariffs - EU also in his sights
The first week of trading under the new Trump administration is behind investors. In particular, the markets were once again concerned about the possible introduction of punitive tariffs on imports into the US, such as from Mexico, Canada and China. At the annual World Economic Forum in Davos, Trump also accused the EU of not buying agricultural products and cars from the US. The fear of possible punitive tariffs is likely to continue to hover over investors' heads like the sword of Damocles.
Focus on new orders for durable goods on Tuesday - US Federal Reserve meeting likely to decide the weal and woe
On Tuesday, the focus will shift to new orders for durable goods (14:30). These are important as the goods in question are generally associated with higher spending and can therefore provide an indication of activity in the US economy.
Consumer confidence from the Conference Board (16:00) is also worth watching.
Investors will be focusing on the first US Federal Reserve meeting of 2025 in the middle of the week. While the interest rate decision is scheduled for 20:00, Fed Chairman Jerome Powell is expected to address the public from 20:30.
The CME Group's "Fed Watch Tool" currently only signals a probability tending towards zero (0.5 percent) that interest rates will be cut.
ECB meeting should also be important for US investors
What the European monetary authorities decide on Thursday could also be of interest. The key interest rate decision of the European Central Bank (ECB) is on the agenda for 14:15. The press conference with Christine Lagarde will follow at 14:45. It is possible that the ECB could continue its cycle of interest rate cuts and lower the deposit rate by a further 25 basis points to a level of 2.9 percent.
Focus on US price data on Thursday and Friday
Important US price data is on the agenda at 14:30. Core personal consumption expenditures can provide important inflation indicators and thus be of significance in terms of monetary policy.
In addition to the weekly initial claims for US unemployment benefits, the price index for gross domestic product is also likely to attract attention (14:30).
On Friday, new data on the PCE deflator for personal consumption expenditure will round off the week from the perspective of the economic data calendar (14:30).
Reporting season continues with Meta, Microsoft and co
Important highlights await in the reporting season, particularly in the middle of the week with the scheduled publication of figures from Meta, Microsoft and Tesla. Apple and Intel will also report on Thursday.
Dow Jones Industrial Average Index
Source: TradingView
