Bank of America Maintains Forecast for Two Fed Rate Cuts in 2026 Despite Inflation Risks 
Bank of Japan Signals Potential Rate Hike as Inflation Risks Rise Amid Energy Shock 
Oil Prices Rise as U.S.-Iran Tensions and Strait of Hormuz Disruptions Persist 
RBA's Hauser Flags Uncertainty on Rate Settings Amid Iran War Economic Risks 
Foreign Investors Drive Surge in Japanese Stocks Amid AI Rally and Improved Risk Sentiment 
Stock Futures Dip as S&P 500, Nasdaq Hit Record Highs Amid Rising U.S.-Iran Tensions 
Asian Markets Mixed as Oil Prices Rise Amid Middle East Tensions and Ceasefire Uncertainty 
Bank of Japan Governor Signals Accommodative Stance Amid Negative Real Rates 
South Korea Central Bank Signals Cautious Policy Amid Inflation and Middle East Tensions 
This week is extremely risk heavy. The week is filled with scheduled data releases and events which are likely to trigger large scale volatilities in the market.
What to watch for over the coming days:
- US data:
Some key data will be released this week; PCE inflation and income/spending data on Monday, manufacturing PMI on Wednesday, and NFP report on Friday.
- Central banks:
Bank of Japan (BoJ) will announce policy decision on Tuesday at the first anniversary of its negative rates introduction. Federal Reserve will announce its policy decision on Wednesday when it is widely expected to stay put as it increased rates just in December. The Bank of England (BoE) will announce interest rate decision on Thursday.
- US earnings:
Investors would remain focused on fourth quarter earnings details from the companies listed in S&P 500. This week, more than 100 companies listed in S&P 500 are scheduled to announce results including Apple, Facebook, ExxonMobil, Pfizer, ConocoPhillips, and more.
- Trump:
The new US President Donald Trump shook the whole country as well as the world on his very first week with an array of executive orders. Eyes would remain focused on the White House on Trump’s second week.
