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Key data to watch this week
Asian markets faltered as Japan kicked off its first trading day of the year. Canadian politics may see a shake-up with Justin Trudeau’s rumored resignation. Meanwhile, the Fed doubled down on inflation concerns, and key economic data takes center stage this week.
Japanese stocks dropped, while US and European futures traded mixed.
Trudeau is expected to resign.
China’s services PMI hit a 7-month high.
Key global data includes Eurozone inflation, US jobs, and Australia CPI.
Asian markets stumbled on their first trading day of the year, with Japanese equities leading the losses. US and European futures showed mixed performance as global investors assessed fresh economic data and central bank signals. In China, the People’s Bank of China (PBOC) maintained its support for the yuan, while a broader measure of Asian currencies fell to a 20-year low against the US dollar.
Meanwhile, Canada is bracing for a potential political shift as Prime Minister Justin Trudeau is expected to resign as leader of the Liberal Party. According to The Globe and Mail, Trudeau’s departure could be announced imminently, sparking a leadership contest and political uncertainty. The Canadian dollar, however, gained ground amid the speculation.
In the US, Federal Reserve officials Mary Daly and Adriana Kugler stressed that the fight against inflation remains unfinished, signaling that the central bank’s 2% target is still far from reach. “Pricing pressures are still uncomfortably above our target,” Daly said, echoing Kugler’s view that further vigilance is needed.
Economic activity in China showed signs of improvement, with the Caixin services PMI rising to 52.2 in December—the highest reading since May. The data reflects a recovery in the services sector, aligning with gains in Beijing’s official metrics. The PBOC also vowed continued support for innovation and domestic consumption, reinforcing its pro-growth stance.
Key data to watch this week:
Tuesday, January 7, 2025
- Eurozone inflation: Forecasts suggest headline inflation will rise to 2.4%, with core inflation steady at 2.7%. The ECB’s December projections point to persistent inflation risks.
- US ISM services: Economists expect the non-manufacturing PMI to climb to 53.5 in December, reflecting ongoing expansion in the services sector.
Wednesday, January 8, 2025
- Australia CPI: Inflation for November is predicted to tick higher to 2.3%, driven by rising housing and food costs.
- FOMC Minutes: The Fed’s latest meeting minutes are expected to shed light on its recent hawkish pivot, including its plans for a slower pace of rate cuts in 2025.
Friday, January 10, 2025
- US Non-Farm Payrolls: Economists anticipate job gains of 150,000 for December, marking the weakest monthly growth since 2019. Unemployment is forecast to remain at 4.2%.
- Canada jobs: Analysts project 24,000 jobs added in December, down from the prior month’s 50,500. The unemployment rate is expected to hold steady at 6.8%.
