Important weekly market news.
US earnings, Davos, Trump’s impeachment trial, central bank meetings from Eurozone, Japan and Canada, and PMI’s from Eurozone, UK and US will dominate the market.
President Trump’s impeachment trial is scheduled to start this week, with opening arguments in the Senate on Tuesday. The president has named Kenneth Starr, who investigated former president Bill Clinton, and Harvard Law professor Alan Dershowitz to his legal team.
President Trump has been alleged of misusing his office to pressure the Ukrainian government to announce investigations into political rival Joe Biden. ECB will announce its decision on Thursday. Markets expect the meeting to be uneventful and President Lagarde is expected to reveal details of the central bank’s upcoming strategy review. The BoJ will deliver its interest rate decision on Tuesday and is widely expected to announce no change to monetary policy.
BoC is also expected to keep interest rates on hold. On the corporate front, earnings season is picking up, with more than 40 companies listed on the S&P 500 announcing their earnings results including Netflix, Johnson & Johnson, Intel, IBM, Comcast, Texas Instruments, Lockheed Martin, Starbucks, American Express, United Airlines, Southwest Airlines, and American Air Lines among others.
Global stocks advanced, as the U.S.-China trade deal, strong corporate earnings and encouraging U.S. economic data lifted equity markets.
US treasury yields ended slightly higher, with the yield on the 10-year bond ending at 1.83% from 1.79% a week ago. Volatility plummeted, with the VIXreaching 12.10 from 14.02 the week ago.
German GDP growth slows in 2019.
According to a preliminary estimate, German GDP expanded 0.6% in 2019 versus 1.5% in 2018. This was the slowest growth rate since 2013 and below the average of 1.3% of the past 10 years, although the economy has expanded for 10 consecutive years. Growth in 2019 was mainly supported by consumption expenditures and gross fixed capital expenditures in construction.