As the week unfolds, significant political and economic events are set to shape global markets and headlines. Here’s what to watch for:

Monday: Donald Trump’s Inauguration

Monday marks a pivotal political moment as Donald J. Trump is inaugurated as the 47th president of the United States. Anticipation surrounds his potential policies, with speculation about executive orders, trade tariffs, and international relations dominating discussions. Markets and analysts are bracing for possible volatility, given Trump’s historical unpredictability.

Tuesday: UK Jobless Data and German Economic Sentiment

The UK’s labor market takes center stage on Tuesday, with November jobless data due early in the day. Economists expect the unemployment rate to rise slightly, from 4.3% to 4.4%, while wage growth is forecast to remain steady. This could provide insight into the broader health of the UK economy amidst ongoing uncertainties.
Later, Germany’s ZEW Investor Confidence Index will shed light on sentiment in Europe’s largest economy. A slight dip is anticipated, reflecting cautious investor outlooks ahead of key political shifts and slowing economic momentum.

Friday: Bank of Japan Rate Decision

Friday starts with the Bank of Japan’s highly anticipated policy meeting. Markets widely expect the central bank to raise its benchmark interest rate by 25 basis points, from 0.25% to 0.5%. With over 70% of surveyed experts believing more hikes are possible, the decision could signal a significant policy shift as the BoJ continues to navigate inflation and global market dynamics.

Friday: Eurozone and UK Flash PMIs

Flash PMI readings for January are expected to paint a sobering picture of economic activity in Europe. Manufacturing indicators are forecast to decline further, with Eurozone manufacturing slipping to 45.3 and the UK’s to 45.6, both signaling contraction. Services, however, show more resilience, with forecasts of slight growth in both regions. These data points will provide a critical snapshot of the economic climate heading into 2025.

This week brings a mix of political intrigue and economic data, with Trump’s inauguration and central bank decisions likely to dominate headlines. Investors and analysts will be watching closely for signals on how these developments could shape global markets in the weeks and months ahead.