Upbeat music plays.
[Screen shows “Weekly Market Outlook with Jeffrey Kleintop”]
[Jeff holds up an illustration of toupee labelled “Day One”]
From the inauguration of President Trump to a possible rate hike by the Bank of Japan and major corporate earnings, I’m Jeff kleintop with what you need to know for the week ahead.
On Monday, markets closed for Martin Luther King Jr. Day as Donald Trump is sworn in as 47th president of the United States. Markets have been anticipating a flood of executive orders on Day One.
On Wednesday, Travelers,
[Jeff holds up an illustration of an umbrella labelled “Earnings Season”]
the first major insurer to post earnings since wildfires broke out across Southern California, will likely face questions about those losses. It’s seen as one of the most exposed. The fires could cost the industry as much as $40 billion, according to some projections. Commentary from Travelers executives will offer a preview of what other insurers may say in the coming weeks. There can be no guarantees, but historically, the stocks of insurers tend to fare well once a disaster has been contained on the expectation that prices for insurance may climb to recover losses and as weaker competitors exit.
On Friday, the Bank of Japan
[Jeff holds up an illustration of the islands of Japan imposed over a dark circle labelled “Japan”]
policy makers are expected to raise interest rates by 25 basis points. The last time the BOJ hiked rates, in July of last year, it sparked a three day sell-off amounting to a -20% move for the MSCI Japan Index and -6% move for the S&P 500 as the yen carry trade unwound. Those who has positioned themselves against a rising yen had to quickly sell assets to close out their short positions in the Japanese currency. The vulnerability to such decline seems much less this time given fewer speculative short yen positions in the futures market.
[Jeff holds up an illustration of a factory with smokestacks]
Now on Friday we also get my favorite monthly economic reading: the Preliminary purchasing Managers indexes for the U.S., UK, Germany, France, Eurozone, Japan, and India. Europe’s January PMI data will be closely watched for further signs of improvement seen in December.
[Jeff holds up sign saying "Thank You"]
Thanks for watching.
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