Market Updates

Key economic data, the BoE’s rate decision, and the US employment report will drive market movements this week, while escalating global trade tensions following Trump’s tariff announcements have triggered volatility, with stocks sliding and the dollar surging.

Strong Q4 earnings and resilient economic growth, boosted by AI-driven gains across sectors, support BlackRock’s overweight stance on U.S. stocks, though risks to investor sentiment from policy and earnings remain in focus.

This week, markets will focus on the Lunar New Year in Asia, key central bank meetings (FOMC and ECB), major tech earnings, and critical economic data like US PCE and GDP, alongside developments in China’s manufacturing slowdown and the Bank of Japan’s recent rate hike.

Surging bond yields align with our outlook for sustained higher rates, prompting BlackRock to favor short-dated Treasuries and credit for income while prioritizing stock investments driven by corporate earnings growth.

This week’s focus includes Trump’s inauguration, the Davos World Economic Forum, key corporate earnings, global economic data releases, and central bank actions, while markets digest last week’s inflation surprises, a rebound in U.S. equities, and China’s accelerating economic recovery.

BlackRock remain pro-risk, favoring U.S. stocks, while closely monitoring policy shifts, investor sentiment on earnings and tech valuations, and vulnerabilities like rising bond yields and corporate refinancing risks.

Markets face a pivotal week with US inflation data, economic updates, and earnings reports from major banks, alongside global events including Eurozone and UK inflation figures, China’s GDP, and central bank insights, as strong US data fuels yield surges and inflation risks dominate policy discussions.

The 2025 outlook emphasizes economic transformation over traditional cycles, offering opportunities to counter market misinterpretations of macro data while navigating surprises, volatility, and policy-driven shifts.

The first full week of the year features key economic data releases, including the FOMC minutes, US employment report, global PMI and inflation readings, alongside central bank commentary, with markets focused on inflation control, labour market resilience, and evolving monetary policies from the Fed, ECB, BoE, and PBoC.

BlackRock believes economic transformations require scenario-driven portfolio strategies, as government bonds are less reliable diversifiers, prompting investors to consider alternatives like gold and bitcoin for distinct risk and return drivers.