Market Update

The week witnessed fluctuating global equity markets, largely due to a balancing act between robust data from China and a series of tepid US indicators, juxtaposed against statements from Fed officials.
The recent spate of US data, encompassing Empire Manufacturing, retail sales, PPI, and the Beige Book, collectively hinted at a deceleration in the US economy and its inflationary tendencies. Theoretically, this slowdown could signal an end to the Fed's stringent monetary tightening, bolstering global stock markets.
However, counteracting this potential optimism, various Fed officials made their presence felt throughout the week. None indicated any inclination towards a policy shift. Instead, they unanimously championed the necessity for continued and sustained high US interest rates. Yet, as we've previously noted, while it's currently feasible for these officials to firmly advocate for elevated rates, maintaining such a stance might become challenging if the US economic momentum genuinely falters.
Looking forward, the upcoming week might experience a slight lull, given that several east Asian markets will be observing the Lunar New Year holidays. Nonetheless, significant data releases await, including US Q4 GDP, PMIs from the US, UK, and Eurozone, US durable goods orders, Irish retail sales, and the University of Michigan's consumer sentiment index.