Markets Will Be Keeping a Close Eye on Davos and Washington This Week

January 21, 2020

Markets Will Be Keeping a Close Eye on Davos and Washington This Week Photo

Last week, equity markets marched to new highs on solid earnings from the big banks and continued strong economic data. Markets will continue to get a slew of corporate earnings reports this week, but will also hear from the Bank of Japan, Bank of England (BoE) and Bank of Canada on monetary policy. As Brexit works its way through Parliament, I will be watching the BoE for any changes in policy positioning.

The other two areas of focus for the week will be the impeachment hearing in the Senate and the World Economic Forum in Davos, Switzerland. The impeachment hearing will receive a lot of media attention this week; however, the market should be muted unless there is a major surprise. It is always interesting to hear the perspectives of key leaders and government officials coming out of the World Economic Forum. I expect there to be a lot of emphasis on two major topics that will have significant long-term implications: climate change and stakeholder capitalism.

Tags: Equities | Bank of England | Bank of Japan | World Economic Forum | Davos | Monetary policy

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