13 January Market Events: Inflation, Earnings, GDP & More

The week of 13 January 2025 is here and has brought with it a myriad of economic releases and reports that could provide traders and investors with key information about the markets and the state of the economy. Here’s what you need to know:

China’s GDP 

China, the world’s second-largest economy, will release its Gross Domestic Product (GDP) data on Thursday, 16 January. The report will show whether its economy has expanded or contracted year over year.

Despite the economic uncertainties and pressures from factors such as the US-SINO trade restrictions, this week’s GDP data is expected to show that China’s economy hit its 5% annual growth target in 2024. If this projection materialises, it will adhere to President Xi Jinping’s statement at the end of December 2024. 

Besides the GDP release, traders and consumers may want to keep in mind the fact that today, it was revealed that China’s trade surplus in 2024 hit a record high (especially for integrated circuits (ICs and cars).

Exports grew 5.9% YoY in 2024 to $3.58 trillion. Imports rose $2.59 trillion YoY but were “insufficient to narrow the gap.” This, in turn, has led to a record trade surplus of $992.1 billion.

Inflation Data 

Consumer Price Index (CPI), an important measure of inflation and deflation, will be released from various economies this week.

• France, Poland, Russia, Saudi Arabia, Spain, UK, and US CPI on Wednesday, 15 January.

• Germany and Italy CPI on Thursday, 16 January.

• Eurozone CPI on Friday, 17 January. 

It will be interesting to see how these big economies have performed recently. 

Big Bank Earnings 

Major banks are set to release their earnings this week. Wells Fargo (WFC), Citigroup (C), JPMorgan (JPM), and Goldman Sachs (GS) will report their results on Wednesday, 15 January, while Morgan Stanley (MS) and Bank of America (BAC) will report on Thursday, 16 January. 

US banks are poised for a strong earnings season, supported by robust investment banking fees, solid trading income, and reduced pressure on deposit rates. Optimism for bank results has further risen following Trump's election victory, with expectations that his administration will usher in deregulation and pro-business tax reforms, potentially boosting banks' profitability. (Source: Investing.com)

Moreover, in addition to big banks, companies like TSMC (TSM) and UnitedHealthGroup (UNH) will report earnings on Thursday this week.

US Data: CPI, PPI, Housing, Retail & FedSpeak

The world’s largest economy is in for an eventful week as both the Producer Price Index (PPI) and CPI will be released on Tuesday and Wednesday, respectively, ahead of this month’s Federal Reserve interest rate decision on 28-29 January. 

Additionally, US retail sales and housing starts will be released on Friday.

Speeches from key Fed members, including New York Fed President John Williams, Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, Richmond Fed President Tom Barkin, and Chicago Fed President Austan Goolsbee will accompany all of these reports.

More Releases

The following releases are also scheduled this week:

• Tuesday, 14 January: US NFIB Small Business Optimism Index and speech from European Central Bank (ECB) member Philip R. Lane.

• Wednesday, 15 January: US Empire State manufacturing survey, US business inventories, UK PPI, and German GDP.

• Thursday, 16 January: US initial jobless claims and UK GDP. 

• Friday, 17 January: US Industrial production, US capacity utilisation, UK core retail sales, and Spanish trade balance.

Conclusion 

This week, economic releases and corporate earnings reports are set to provide valuable insights for traders and investors, particularly regarding inflation, GDP, and major bank performance. Key data from the US, China, and Europe will be closely watched, alongside the potential impact of US bank results and Federal Reserve speeches on market sentiment.