Global markets enter the first week of February amid heightened uncertainty, following extraordinary volatility in precious metals, growing concerns over dollar debasement, and a major shift in US monetary leadership with President Trump nominating Kevin Warsh as the next Federal Reserve Chair. With key labor data, central bank decisions, inflation prints, and heavyweight earnings on deck, investors are bracing for a data-intensive week that could set the tone for risk sentiment going forward.

Americas:

In the United States, focus will centre on the labor market, with the January nonfarm payrolls report expected to show a modest pickup in job growth while unemployment remains steady. Additional insights will come from JOLTS, ADP employment data, and Challenger job cuts, alongside ISM manufacturing and services PMIs and the University of Michigan consumer sentiment survey. Corporate earnings remain in the spotlight, with results from Amazon, Alphabet, AMD, Palantir, Qualcomm, and Walt Disney, keeping AI-linked valuations and Big Tech momentum firmly in focus. Elsewhere in the region, Canada will release employment figures, while Mexico’s central bank is set to deliver its monetary policy decision.

Europe:

European markets will be shaped by major central bank meetings, with both the European Central Bank and the Bank of England widely expected to keep interest rates unchanged. Inflation data from the Eurozone, France, and Italy will be closely watched for confirmation of easing price pressures. Economic data points to mixed momentum, as manufacturing activity remains under strain while services show relative resilience. Germany’s factory orders and retail sales, alongside Eurozone retail data and trade figures, will further guide growth expectations.

Asia-Pacific:

In Asia, China’s official and private PMI readings will take centre stage, offering a fresh assessment of manufacturing and services activity amid subdued growth conditions. In Australia, the Reserve Bank is expected to raise interest rates following stronger-than-anticipated inflation. Japan will release the Bank of Japan’s Summary of Opinions, reinforcing its tightening bias. Across the region, inflation, trade, GDP, and PMI data from major Asian economies will help shape regional market sentiment.

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