View the top 6 stories to look out for this week (16-20 January) plus our key company earnings schedule.
All eyes on Davos and The Donald this week
Michael Hewson discusses this week's World Economic Forum, Trump inauguration, UK data releases, Chinese GDP and the ECB rate meeting.
The week ahead
Is Rio Tinto sitting on a gold mine?
Monday: The recent rise in oil, iron ore and copper prices meant basic resources stocks staged a remarkable comeback in 2016. Rio Tinto’s Q4 sales and revenue should indicate whether last year's gains can be sustained in 2017.
Can US banks continue their winning streak?
Tuesday & Wednesday: The surge in US banks' share prices since Trump’s election win has been considerable, with double-digit percentage gains. The rise in yields brought about by the recent Fed rate rise has also helped. Q4 earnings from Morgan Stanley (Tue), Goldman Sachs and Citigroup (Wed) will help to show whether these gains are sustainable.
Wednesday & Friday: UK economic data this week is set to underscore a strong end to 2016, with strong retail sales, rising wages and low unemployment, but rising inflation is likely to prompt a modest slowdown in 2017.
How will the ECB address the German asset bubble?
Thursday: While the European Central Bank expanded its range of QE options in December, it's unlikely to do anything this week. A sharp rise in German and EU inflation has already brought about a backlash in Germany, with calls for an end to the current low interest rate and QE policy.
China Q4 GDP, industrial production & retail sales data
Friday: Strong numbers in the latest PMI data as well as rising inflation suggests a decent performance for the Chinese economy at the end of 2016. There is some evidence that Chinese consumers started to spend in November, and this week’s December data should tell us whether this continued.
Selected UK & US company earnings schedule
|Monday 16 January||Results|
|Rio Tinto (UK)||Q4 2016 sales & revenue|
|Tuesday 17 January||Results|
|Comerica (US)||Q4 2016|
|CSX (US)||Q4 2016|
|Morgan Stanley (US)||Q4 2016|
|Tiffany & Co (US)||December sales & revenue|
|UnitedHealth (US)||Q4 2016|
|Wednesday 18 January||Results|
|Burberry (UK)||Q3 2017 sales & revenue|
|Charles Schwab (US)||Q4 2016|
|Citigroup (US)||Q4 2016|
|Goldman Sachs* (US)||Q4 2016|
|Kinder Morgan* (US)||Q4 2016|
|Netflix (US)||Q4 2016|
|US Bancorp (US)||Q4 2016|
|Thursday 19 January||Results|
|American Express (US)||Q4 2016|
|Bank of New York Mellon Corp (US)||Q4 2016|
|BB&T (US)||Q4 2016|
|International Business Machines (US)||Q4 2016|
|PPG Industries (US)||Q4 2016|
|Skyworks Solutions (US)||Q1 2017|
|Union Pacific (US)||Q4 2016|
|United Continental* (US)||Q4 2016|
|Friday 20 January||Results|
|Citizens Financial Group (US)||Q4 2016|
|General Electric (US)||Q4 2016|
|Kansas City Southern (US)||Q4 2016|
|Schlumberger (US)||Q4 2016|
|Synchrony Financial (US)||Q4 2016|
Company announcements are subject to change. All the events listed above were correct at the time of writing.
CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.