5 Important Developments to Monitor This Week

5 important developments to monitor this week have been announced. The US jobs report for January will be the highlight of the week.

1. US Employment Report

The US will release its January nonfarm payrolls report on Friday. Economists expect job growth to rise from 199,000 in December to 155,000 in January. Signs that the labor market remains strong may add to arguments about how aggressively the Fed can tighten monetary policy to fight inflation.

2. Earnings Reports

Alphabet and Amazon's earnings reports will be released on Tuesday and Thursday this week. Tech stocks have been under pressure this year as investors' unwillingness to turn to growth stocks amid rising returns amid the Fed's political tightening plans. Other earnings reports of interest include Meta, General Motors (NYSE:GM), Ford (IS:FROTO), Exxon Mobil (NYSE:XOM), Bristol-Myers Squibb (NYSE:BMY) and Merck.

3. Buying the Dip

The sharp drop in the US stock market in January has caused some investors to examine the valuations of stocks to see if it is a good time to buy the shares at bargain prices. The market decline has not been quick enough for Barclays (LON:BARC) strategists. Earlier last week, they announced it was "too early to buy the dip." On the other hand, strong results seen in fourth-quarter earnings reports may support investors' search for discounts.

4. BoE May Raise Rates

At Thursday's meeting, the BoE is expected to raise rates by another 0.25% to contain inflation, which is at its peak in three decades. In December, the BoE became the first major central bank to raise interest rates since the start of the pandemic. Market audiences will listen to what Manager Andrew Baily has to say about the future of interest.

5. Euro Zone Data, ECB Meeting

The Eurozone will release fourth-quarter GDP data and January inflation figures ahead of Thursday's ECB meeting. GDP is expected to show economic growth slowing in the quarter to December as inflation is thought to have calmed down. The ECB differs from the Fed and the BoE in that it is far from a possible rate hike.     Source: Investing.com