Highlights of This Week: The Federal Reserve's Decision Takes Center-Stage, with Earnings Reports of Apple and Tesla on the Horizon
Last week, U.S. stocks generally rose, and the three major indexes have had two-week consecutive gains. Among them, the S&P 500 index once hit an intraday high and also set a historical closing record on Thursday.
Media analysis believes that U.S. President Donald Trump's pro-business policies are one of the main reasons for the overall strength of risk assets. In addition, due to Trump's "verbal pressure", international oil prices recorded their first weekly decline since the beginning of the year.
This week, part of the market's attention will shift to the Federal Reserve, which is scheduled to announce its interest-rate decision this Wednesday.
Although the market does not expect an interest-rate cut, given Trump's repeated calls for lower interest rates, it is still full of highlights.
Around the Federal Reserve's decision, the Swedish central bank, the Bank of Canada, and the European Central Bank will also announce their respective interest-rate decisions.
Different from the Federal Reserve, the market expects these three central banks to cut interest rates by 25 basis points.
After the central-bank decisions, investors still cannot relax, as there will be the initial value report of the U.S. real GDP in the fourth quarter of 2024 this Thursday, and the U.S. personal consumption expenditure report this Friday, which includes the PCE price data most favored by the Federal Reserve.
The earnings season is also reaching a climax, with a large number of U.S. tech giants and energy leaders scheduled to release their earnings reports this week, presenting an "all-star" lineup.
The tech companies include Apple, Microsoft, Meta, Tesla, ASML, Intel, etc. On Friday, ExxonMobil and Chevron, the two largest oil and gas companies in the United States, will also release their reports.
Overview of important overseas economic events this week:
The Chinese stock market will be closed from January 28 to February 4.
Monday: Germany's IFO Business Climate Index in January, the annualized total number of new home sales in the U.S. in December, the Dallas Fed's Business Activity Index in the U.S. in January
Tuesday: The U.S. durable goods orders month-on-month rate in December, the U.S. FHFA house price index month-on-month rate in November, the U.S. Conference Board Consumer Confidence Index in January, the Richmond Fed Manufacturing Index in the U.S. in January
Wednesday: The Bank of Japan releases the minutes of its monetary policy meeting in December, Australia's CPI annual rate in the fourth quarter, the Bank of Canada announces its interest-rate decision and monetary policy report, the EIA crude oil inventories in the U.S. for the week ended January 24
Thursday: The Federal Reserve's FOMC announces its interest-rate decision, Federal Reserve Chairman Jerome Powell holds a monetary policy press conference, the initial value of France's GDP annual rate in the fourth quarter, the initial value of Germany's non-seasonally adjusted GDP annual rate in the fourth quarter, the initial value of the euro-zone's GDP annual rate in the fourth quarter, the unemployment rate in the euro-zone in December, the European Central Bank announces its interest-rate decision, European Central Bank President Christine Lagarde holds a monetary policy press conference, the initial jobless claims in the U.S. for the week ended January 25, the initial value of the U.S. real GDP annualized quarterly rate in the fourth quarter, the month-on-month rate of the U.S. existing-home sales contract index in December
Friday: Japan's unemployment rate in December, the initial value of Germany's CPI month-on-month rate in January, Canada's GDP month-on-month rate in November, the U.S. core PCE price index annual rate in December