Global stocks and precious metals ended the first trading week of 2023 on a positive note. The bullish sentiment was driven by the latest inflation data from Germany and Eurozone, both the CPI data came in cooler than expected, signaling that the persistent inflation in Europe may have peaked. On the other hand, the US employment report showed the US economy added more jobs than expected and that the Unemployment Rate edged lower.
This week, all eyes will be on the US inflation data to gain further clarity into whether the inflation peaked, with many fearing a more severe recession on the horizon. The inflation data might influence the Federal Reserve’s decision on whether to act more aggressively. The markets expect to see a further moderation in the annual rate of inflation from 7.1% down to 6.6% - still more than three times higher than the Fed’s 2% target.
On the earnings front, the companies scheduled to release their last quarter financial results this week will be Delta Airlines, JP Morgan, Wells Fargo, Citi and Bank of America.
Check out the detailed weekly analysis here - https://gulfbrokers.com/en/weekly-review-gold-usd-eurusd-and-dow-jones-62