5 Factors to Follow in the Markets By Investing.com

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Investing.com – Here are the top financial markets events to watch this Friday, January 14:

1. US banks

The US earnings season begins, as always, with a bang. The investment giants JPMorgan (NYSE :), Wells Fargo (NYSE :), Citigroup (NYSE 🙂 and BlackRock Inc (NYSE 🙂 will announce their results prior to the opening of Wall Street.

“If earnings season provides a valid distraction for investors, the uncertain environment for interest rates and inflation will keep the market at attention,” Oanda analysts wrote in a statement.

2. Central banks

In yesterday’s Senate hearing, Fed Deputy Governor Lael Brainard said the central bank will begin the process of raising interest rates “as soon as” it completes the program’s withdrawal from QE in March. Furthermore, according to the former Undersecretary of the Treasury, the pressure on prices “will persist for the next two quarters”.

In Europe, investors will be on the lookout for ECB President Christine Lagarde’s speech at 2.30pm CET for new indications on Eurotower’s moves.

3. More pressure on techs

The many (perhaps too many) interventions by policymakers on interest rates did not do well for stocks in the tech sector, with which it lost 2.5% in Thursday’s session, while it returned -2.65%. In Asia, the is losing 1.3%.

4. Telenovela Boris

The British pound seems unaffected by the political turmoil surrounding 10 Downing Street. Prime Minister Boris Johnson is in fact under friendly fire after new revelations on the ‘Covid party’ scandal held in December 2020 in full lockdown. The former mayor of London apologized yesterday in the Westminster Q&A session, but the resignation doesn’t seem so far off.

The exchange rate at 1.3723 against the dollar compared to 1.356 on January 7th, perhaps because, according to Oanda, the risk deriving from inflation and interest rates is “higher than the political risk”.

5. Bags

Negative sign today on the main Asian indices, down by 0.4% and down by 1%. In Europe, futures indicate -210 points for the, -100 points for the and -70 points for the Cac.

Among the main macroeconomic events, after the GDP of the United Kingdom, attention to the CPI and the budget balance in France, the CPI in Spain and the trade balance in the euro area. From the United States will come retail sales, industrial manufacturing and consumer confidence from the University of Michigan.

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