FOMC Meeting and Big Tech Earnings... Korean Investors Say 'This Week is Crucial'
- The FOMC meeting is likely to hold rates steady, which is a major focus for the market.
- The earnings announcements from major Big Tech companies, especially Tesla and Meta, are expected to elicit sensitive reactions from investors.
- It is anticipated that the volatility of the global asset market will increase depending on the U.S. economic indicators and corporate earnings announcements this week.
- The article was summarized using an artificial intelligence-based language model.
- Due to the nature of the technology, key content in the text may be excluded or different from the facts.
"Fed Holds Rates Despite Trump's Pressure"
Last Year's Q4 GDP Growth Also in Focus
Earnings Releases from Tesla, Apple, Meta, etc.
This week, the global asset market is expected to be volatile. This is because major countries are holding monetary policy meetings one after another, and corporate earnings announcements are concentrated.
The biggest event on the New York Stock Exchange is the Federal Reserve's Federal Open Market Committee (FOMC) regular meeting (28th-29th). President Donald Trump recently emphasized in a video speech at the World Economic Forum (WEF) in Davos, Switzerland, that "I will demand an immediate rate cut, and likewise, rates should be lowered worldwide." He is openly pressuring the Fed to cut rates.
However, Wall Street leans towards the possibility of holding rates steady. This is because the inflation rate has not fallen to the Fed's target of 2%, and the U.S. economy is showing strong performance.
The U.S. Consumer Price Index (CPI) for December last year jumped 2.9% compared to the same period the previous year. It recorded the highest increase in five months since July (2.9%). There are concerns that if President Trump imposes tariffs in earnest, import prices will soar, reigniting inflation. According to the Chicago Mercantile Exchange (CME) FedWatch, the probability of holding the federal funds rate steady in January is 97.9% in the federal funds rate futures market.
On the same day as the FOMC, the Bank of Canada will also hold a monetary meeting. The market consensus is that the benchmark interest rate, which is 3.25% per annum, will be slightly reduced. On the 30th, the European Central Bank (ECB) will decide on the benchmark interest rate. A slight reduction is also expected.
The preliminary figure for the U.S. GDP growth rate for Q4 last year, which will be released on the 30th, is also a noteworthy indicator. There is speculation that the robust economic trend is likely to have continued. On the last trading day, the 31st, the PCE price index for December last year is scheduled to be announced.
Major corporate earnings can also be confirmed. Four of the Magnificent 7 (M7) will announce their earnings this week. On the 28th, Boeing, General Motors (GM), and Starbucks will release their report cards, and on the 29th, Tesla, Meta, and Microsoft will announce their results.
New York = Shin-Young Park, Correspondent nyusos@hankyung.com

Korea Economic Daily

hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.PiCK News
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