These are market participants’ focus of attention.
The strength in the financial markets continued in the last week of trading. The US stock indices S&P500 and Nasdaq100 experienced the best week since November 2022. Bitcoin (BTC) benefited from increased risk appetite, and it was able to resolve its trading range of the past two months to the upside on Thursday night.
The price of Bitcoin shot north within hours of trading, starting a cascade of liquidation of over $500 million in leveraged short positions. As a result, the cryptocurrency peaked at $21,321, dragging the entire crypto sector higher.
In view of important economic data, the new business week only really picks up speed on Tuesday, due to Martin Luther King Day in the US. New economic data from the PRC will kick things off. Midweek, with new producer prices and retail sales, market participants expect the release of several key figures on the state of the US economy. At the end of the week, investors focus on the development of the US real estate market.
Gross Domestic Product and Industrial Production in China Open the New Business Week
Investors are initially focusing on the Far East this week. On Tuesday, January 16, first thing in the morning (03:00 CET), the current gross domestic product for the last quarter of 2022 and the new industrial production figures for the previous month of December will be published in China. Based on China’s GDP data, market experts hope to draw conclusions about the situation in the world’s second-largest economy. After a recovery in the last business quarter, experts forecast slower growth again for the fourth quarter.
If the drop is less severe than expected, investors should take this positively and, contrary to expectations, China may have exported more to the US and Europe than previously assumed.
If, contrary to expectations, economic activity has been more resilient to the many problems in China, prices in the US stock market and therefore also in the cryptocurrency sector could benefit from this.
Publication of Consumer Price Indices in the United Kingdom (UK)
On Wednesday, January 18, the National Statistics Office will publish the latest inflation data for December. A slight decrease from the last 10.7 percent to 10.6 percent is expected, compared to the same period last year.
If the forecasts of market analysts are confirmed, and the inflation rate continues to fall on the island, the general trend is also evident here. If the estimate does not meet market analysts’ expectations, the British pound is likely to appreciate against the US dollar. As in the past, this could have a positive effect on the stock and crypto market.
On the other hand, if the consumption indices turn out to be higher than expected, this would be a warning for the financial market and the US dollar could regain its strength. For Bitcoin and Co. that would be bearish.
By Audy Castaneda
