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
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Open real account TRY 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.
