Major international financial events this week include: December US consumer price index (CPI), start of US corporate earnings season, banking stocks to take the lead, and central bank officials from many countries they gave speeches. In addition, US and Japanese leaders will hold a “ground visit” to Washington.
This Week’s Trading Notes (0109-0113)
1. December US CPI
The US Department of Labor is to announce its December CPI on Thursday 12. If inflation shows signs of slowing further, it will not only bolster market sentiment on the Fed’s policy shift, but could also lead to discussions about the timing interest rate cuts this year.
Japan will also announce CPI in Tokyo area, which is the first official statistic after Bank of Japan (BOJ, central bank) policy suddenly announced yield curve control (YCC) policy easing at the end of last month. to evaluate increases,JPYIt has still appreciated at a seven-month high since then. The Bank of Japan will hold its next decision-making meeting on January 18.
In addition, Australia and China will also announce the latest CPI.
2. Banking stocks kick off fourth-quarter earnings season for US companies
Fourth-quarter earnings season is about to begin for US companies, led by bank stocks, including Bank of America (BAC-US), JP Morgan (JPM-USA), FuGuo Bank (WFC-USA), Citigroup (C-USA) will publish the results on Friday (13) and BlackRock (BLACK-US), United Health (UNH-US), Delta Airlines (FROM-USA) to announce the financial statements.
Analysts polled by FactSet expect S&P 500 companies to report a 4.1% drop in earnings in the fourth quarter of 2022 compared to the same period in 2021, potentially marking the first earnings contraction since the third quarter of 2020.
S&P constituents’ fourth-quarter earnings were also down, down 1.6% for the year, according to consensus forecasts by analysts polled by Refinitv IBES.
3. Talks of central bank officials from many countries
The first monetary conference of this year attended by central bank officials from several countries will be held in Stockholm on Tuesday 10. Both central bankers will give speeches and Isabel Schnabel, member of the executive board of the European Central Bank (ECB) will also be present.
Philadelphia Federal Reserve Bank President Patrick Harker, a voting member of the Federal Open Market Committee (FOMC) in 2023, will speak Thursday on the outlook for the U.S. economy.
Also, the central bank of South Korea held an interest rate decision meeting on Thursday (12th).
4. US-Japan Leaders’ Meeting
Japan holds the rotating presidency of the Group of Seven (G7) this year. Japanese Prime Minister Fumio Kishida will visit France, Italy, Great Britain, Canada and the United States from Monday (9) and meet with US President Joe Biden Friday (13) Talks were held to discuss topics such as economic security, semiconductors, the Russo-Ukrainian war and regional tensions caused by China and North Korea.
When Kishida announced his visit a few days ago, he said he would take the opportunity to demonstrate the strengthening of the US-Japan alliance and discuss issues such as maintaining peace and stability in the Taiwan Strait. The White House also said in a statement that the two sides will exchange views on issues such as the US-Japan alliance, Taiwan Strait security, North Korea, the war in Ukraine and a free and open Indo-Pacific. .
