FUNDAMENTAL REVIEW FOR THE WEEK (13- 17 January 2025)

US stock futures are lower at the start of the week as investors reassess expectations for a possible Federal Reserve rate cut following a strong December employment report.

The focus is on new inflation data due out on Wednesday (in addition to the US, the UK and Germany will also provide inflation data) as well as quarterly reports from major banks. The consumer price index (CPI) for December is expected to show a 2.9% year-on-year increase.

At the same time, China's trade balance has widened as exports have increased ahead of possible trade tariffs from the Trump administration. Oil prices have also risen amid new sanctions against Russian producers.

It is also worth remembering that this week will be a preparatory stage before Donald Trump's inauguration on January 20, which will lead to changes in market participants' portfolios. More inside information and statements are expected from the new administration, which could cause market volatility similar to what happened during Trump's first term. #analytics