Top 5 things to watch in the market next week By Investing.com

Investing.com – Global investors will finally see the market impact of President Donald Trump’s return to the White House. Trump’s inauguration on Monday as the 47th president of the United States is expected to introduce a series of executive orders on issues ranging from taxes to tariffs, as the fourth-quarter earnings season continues in full swing. . Here’s your take on what’s happening in the market for the coming week.

1. Trump’s inauguration

Investors are watching closely as Trump prepares to begin his second term in office on Monday after the incoming president said he plans to sign a series of executive orders on his first day.

US markets will be closed on Monday for Martin Luther King Jr. Day, so the market’s decline may not be fully felt until Tuesday.

Measures related to tariffs will be particularly focused, as leaks, leaks, and denials from options still exist in the market.

Ahead of the inauguration, long-term US bond yields rose amid expectations that Trump’s proposed tariffs could spark a revival in inflation.

2. Salary

Investors hoping for another strong year in equity markets driven by US corporate profits will get a clearer picture this week, with a series of companies set to report fourth-quarter earnings.

Key earnings reports will come from giant Netflix (NASDAQ:), health care leader Johnson & Johnson (NYSE:), consumer goods powerhouse Procter & Gamble (NYSE:), and credit card issuer. American Express (NYSE: ).

Earnings season began last week as major banks reported higher profits, boosted by sales growth and strong equity market activity that boosted corporate income.

In general, analysts expect companies to report an annual increase of 10.4% in earnings for the fourth quarter, according to LSEG IBES data from January 15, cited by Reuters.

3. Davos

Government and business leaders from around the world will attend the annual meeting of the World Economic Forum in Davos, Switzerland, starting on Monday.

A WEF study released ahead of the conference last week showed that armed conflict is the biggest threat to the global economy by 2025, followed by extreme weather.

Trump is set to address the conference via video link on Wednesday. Ukrainian President Volodymyr Zelenskiy is also due to attend and will deliver a speech on Monday, according to WEF organizers.

Among other world leaders due to attend the Davos meeting are European Central Bank President Christine Lagarde, European Commission President Ursula von der Leyen, UK Chancellor Rachel Reeves and Chinese Vice Premier Ding Xuexiang.

4. BOJ to go?

The Bank of Japan will hold its first policy meeting of the year on Thursday and Friday.

During the meeting, BOJ policymakers appeared to be the main markets for a rate hike, with Governor Kazuo Ueda and his deputy Ryozo Himino saying whether to raise borrowing costs. will be controversial.

BOJ officials will have several days to gauge how Trump’s policies could affect financial markets before their decision.

A rate hike could narrow the gap between US and Japanese interest rates, which would strengthen the yen. The yen has been rising near the 160 level against the dollar, prompting the BOJ to tap into foreign exchange markets to support the currency.

5. Oil prices

futures rose 1.3% last week while rising 1.7% for the week, as recent US sanctions on Russian energy trade added to fears of a potential supply disruption.

Oil is up 10% so far this month, amid concerns about the impact of further Western sanctions on Russia’s impunity.

Energy traders are also weighing the potential impact of Trump’s return to the White House on Monday. Trump’s pick for Treasury secretary has said he intends to impose tougher sanctions on Russian oil.

Meanwhile, a blast of Arctic air has blanketed much of the US, causing temperatures to drop. It is expected to continue until mid-week, looking to boost demand.