What Will Be on the Agenda of the New Week?

What will be on the agenda of the new week? Which important developments will be monitored? The developments to be followed in the trading week of January 18 - 22 are as follows:   MONDAY China's growth figures for the last quarter of 2020 will be announced on the first trading day of the week. The starting point of the coronavirus epidemic was the country, which shrank 9.8 percent in the first quarter due to the epidemic. China grew 11 percent in the second quarter compared to the first quarter, and closed the third quarter with 2.7 percent growth. The Chinese economy is expected to grow by 3.2 percent in the last quarter. The speech of the Bank of England Governor Bailey will be one of the prominent developments. England, the country worst affected by the epidemic in Europe, is unable to recover. In the UK where all entries and exits will be closed at 4 am on Monday, Prime Minister Johnson's statements on the agenda will be carefully monitored. The data flow will be stable on the first trading day of the week. In addition, there is no significant development in the country.   TUESDAY Automobile sales data of the UK and Germany will be published. In the sector, where production has decreased and sales have increased due to the coronavirus epidemic, the change in the last months will be monitored. Investors' hopes of recovery have diminished due to the increase in the number of Covid-19 cases in Germany and new measures. In November, ZEW Economic Sentiment December figures will be followed, which fell to its lowest level after the pandemic. On the second trading day, when the current account balance data of the region will be published, it is estimated that the Eurozone, which gave a surplus of 26.6 billion Euros the previous month, will give a surplus of over 25 billion Euros in November.   WEDNESDAY On the third trading day, when the data agenda in Europe will be very intense, the CPI data of the UK and the Eurozone will be announced. Inflation, which is below 1 percent in the UK, is expected to be 0.5 percent during the last month. In the Eurozone, it is expected that the negative levels will continue in the last month on an annual basis. At the first interest meeting of the Canadian Central Bank (BoC), a change in the interest rate of 0.25 percent is not expected. The Central Bank had cut the interest rate to 0.25 percent in March due to the pandemic. Weekly crude oil stock data will be published in the USA. The declining stocks in recent weeks also helped brent and crude oil prices to reach their highest levels after February.   THURSDAY The fourth trading day of the week will also be the busiest and most important trading day. On Thursday, CBRT, BoJ and ECB will hold the first meeting of the year. 2020 closed with an interest rate of 17 percent by the Central Bank of the Republic of Turkey (CBRT) and the CBRT is not going to change the interest rates at the first meeting of the year. January and February inflation rates will be determinant in the interest rate, which is higher than the inflation rate of 14.03 percent. It is estimated that the CBRT will take a firm stance in the decision text and give messages of determination. (MPC meeting will take place at 2 pm). While the European Central Bank (ECB), which has further eased the current expansionary monetary policy due to the coronavirus pandemic in 2020, is not expected to change the interest rate, which is at negative levels, it will be monitored whether it will increase its asset purchases. While the Bank of Japan (BoJ), which has been applying negative interest rates for more than 5 years, is not expected to change interest rates, it will be monitored how much the support will increase and its verbal directions. Domestic Consumer Confidence Index will be announced before the MPC meeting to be held on Thursday. The indicator, which fell to 54.9 during the epidemic, rose above the 80.0 level in recent months, recording its 7-year peak. The index is expected to maintain its 80.0 floor in the first month of 2021. Weekly unemployment benefits and housing sales data will be released in the US. The employment market, which recorded its steepest decline after the pandemic, is expected to decrease gradually with the increase in direct aids, hourly wages and weekly allowances in the stimulus package, but the continued restrictions may not bring the expected result.   FRIDAY Retail sales and PMI figures will be monitored in the UK. It is estimated that the weakening will continue on the PMI side, which is in the shrinkage zone due to the closed areas of the service sector such as cafes, bars, restaurants and cinemas. In addition, PMI data is expected to remain weak in Germany and the Eurozone. PMI indicators, which are above the contraction threshold in the US, are expected to decline slightly in the last month. Existing housing sales are expected to decline by over 1 percent in December. The continued increase in the number of cases in Europe and the USA makes new restrictions mandatory. Accordingly, the sectors are expected to remain weak.       Source: Investing.com