The past few days have been characterized in particular by the official inauguration of the new US President Donald Trump. In addition to the publication of isolated economic data on both sides of the Atlantic, the reporting season also provided impetus. The focus is now likely to shift back to monetary policy developments.
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Introduction of possible punitive tariffs fuels fears of trade war
Even though the stock exchange doors on Wall Street remained closed for the Martin Luther King Day holiday, it was Donald Trump's entry into the White House that attracted attention around the globe.
When he took office, Trump threatened to impose punitive tariffs of 25% on imports from Canada and Mexico. At the same time, he announced additional punitive tariffs on Chinese imports. It remains to be seen whether Trump will also announce corresponding tariffs for the eurozone.
German producer prices rise less strongly than expected - ZEW index weak
At the beginning of the week, investors were also confronted with German producer prices, which rose by 0.8% in January (year-on-year), less than expected (1.1%) after 0.1% in December.
At 10.3 points, the ZEW index on Tuesday was significantly weaker than expected (15.3 points), compared to 15.7 points in the previous month. "The lack of consumer spending by private households and weak construction demand continue to weigh on the German economy", according to the ZEW Institute.
Weak signals from the US labor market should encourage interest rate cut fantasies
At 223,000, weekly initial claims for US unemployment benefits were slightly higher than expected (220,000) on Thursday. Weak signals from the labor market should tend to be welcomed by investors. However, the official US labor market was strangely strong at the beginning of the new month.
Trump reiterated his tariff threats against various countries on Thursday afternoon during a live broadcast at the World Economic Forum in Davos. "America is back and open for business," Trump said. "If you don't make your product in America, which is your right, then you will simply have to pay a tariff.
Purchasing managers round off trading week
This morning, new purchasing managers' indices for Germany and the eurozone were on the agenda. In Germany, the index for the manufacturing industry, the service sector and overall all came out better than expected. For the eurozone, only the service sector fell short of expectations.
In the afternoon, the focus will turn to the counterpart for the United States (2:30 p.m.).
Consumer confidence (Reuters/University of Michigan) could also move at 16:00.
As the day progresses, investors are also likely to get in the mood for the coming week, when the major central banks, the Fed (Wednesday) and the ECB (Thursday), will decide on their future monetary policy for the first time this year.
Netflix wins around 19 million customers in Q4 2024
Netflix's figures caused a stir in the reporting season on Tuesday. The US streaming service gained around 19 million new subscribers in the past quarter thanks to live sports formats and the return of the South Korean series "Squid Game".
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