Market Insight

LCG takes a look ahead to the key events in markets for the week starting January 9^th, 2017.

It’s the second week of the New Year and we’ve already seen some interesting market moves. This week we explore the viability of uptrends in the US dollar and equities in light of the moves in the Chinese yuan last week.

Upcoming economic data releases from China could be a catalyst for further moves in the yuan. On Tuesday 10^th China reports inflation data then rounds off the week on Friday 13^th with an update on its trade balance.

Stock markets remain enamoured by the growth potential of the US economy and potential corporate earnings boost from lower taxes and lighter-touch regulation under President Trump. At these elevated levels any exogenous shock can cause a big pullback in stock markets but so far there is no evidence of a trend reversal.

There are a number of corporate earnings in the upcoming week with Biffa, Games workshop and SuperGroup providing updates in the UK. In the US it’s the beginning of Q4 reporting season kicking off in the United States with reports from top banks Bank of America, JP Morgan and Wells Fargo.