In the new trading week, investors will be looking in particular at the official US labor market report (non-farm payrolls). At the same time, the recent nomination of Kevin Warsh as the new Fed Chairman should continue to provide plenty to talk about.
The geopolitical uncertainties surrounding Greenland and the Middle East, for example, are also likely to continue to act as a sword of Damocles. It is also important to keep an eye on the reporting season.
US President Donald Trump nominates Kevin Warsh as the new Fed Chairman
Uncertainty about the future shape of US monetary policy could continue to preoccupy market participants this week. Last Friday, the US President proposed a successor to Jerome Powell, whose term of office as head of the Fed expires at the end of May.
However, Warsh still has to be confirmed by the US Senate. The potential new Fed chairman has repeatedly shown himself to be open to interest rate cuts in the past. However, Warsh is considered to have a restrictive tendency. Questions also remain as to whether he could be seen as an extension of Trump and thus call the Fed's independence into question.
Focus on US economic data - ECB meets on Thursday
The ISM Purchasing Manager for the manufacturing sector is already on the agenda today (16:00).
The so-called „JOLTs“ (Job Openings and Labor Turnover Survey) could provide the first indications of the current state of the US job market on Tuesday (16:00).
The counterpart to the ISM Purchasing Manager for the service sector is expected on Wednesday.
What the ECB's European colleagues decide and signal on Thursday could also be of interest. The ECB's key interest rate decision is expected at 14:15 and the press conference with President Christine Lagarde at 14:45.
US labor market data in focus on Friday - monetary policy stimulus conceivable
On Friday, the last trading day of the week, US labor market data could provide important monetary policy impetus (14:30). Experts expect an increase of 70,000 non-farm payrolls, following a total of 50,000 new jobs in December. The unemployment rate could remain at 4.4% and thus at the previous month's level.
Average hourly wages should also be taken into account, which could provide an indication of inflation.
Finally, the preliminary consumer sentiment data (16:00) will round off the trading week.
Reporting season continues: Alphabet and Amazon in focus
In the ongoing reporting season, the focus today is on the financial figures for the past quarter from Walt Disney (ISIN: US2546871060), on Tuesday from Merck & Co (ISIN: US58933Y1055), on Wednesday from Alphabet A (US: 02079K3059) and on Thursday from Amazon (ISIN: US0231351067) and MicroStrategy (ISIIN: US5949724083).
Dow Jones Industrial Average Index
