The first week of a new year was very interesting on the markets. FOMC minutes triggered some risk-off moods as expectations of a quicker rate lift-off in the United States increased. The week ahead also looks interesting as investors will be offered US CPI readings for December, German GDP report for 2021 and Q4 2021 earnings from Wall Street banks. Be sure to follow GOLD, US500 and DE30 in the week ahead!
GOLD
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appFOMC minutes and recent comments from Fed members boosted hawkish bets in the markets. A quicker rate lift-off in the United States is now expected, combined with reduction of the balance sheet. The upcoming US CPI reading for December (Wednesday, 1:30 pm GMT) could cement these expectations further. Median consensus points to acceleration in headline price growth to 7.1% YoY! Higher-than-expected reading could boost odds for Fed rate hike as soon as in March, and in turn exert pressure on gold prices.
US500
Wall Street earnings for the Q4 2021 begins this week. As usual, major US financial institutions will be the first ones to report results. Earnings from Wells Fargo, Citigroup, BlackRock and JPMorgan will be released on Friday, ahead of the US session open. Banks' results could be upbeat as US yields were on the rise in recent months amid accelerating inflation and growing expectations of Fed's tightening. Solid results could help set the tone for the upcoming earnings season and provide support for the S&P 500 index.
DE30
Earnings seasons in Europe will commence later than on Wall Street. However, investors from Europe will be offered one reading this week that may have a big impact on DE30. The German Federal Statistical Office will publish 2021 GDP growth data on Friday at 09:00 am GMT. The market expects growth of 2.6% for 2021, following a 5% GDP drop in 2020. Meanwhile, DE30 climbed to the all-time high area above 16,200 pts last week but failed to break to fresh records.
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
