Macroeconomic headlines show no sign of letting up over the coming week as UK gross domestic product data and US inflation figures get released.
After fears around tariffs under Donald Trump hampered global stocks and sparked fears over inflation earlier in the month, the US consumer price index will be in focus.
Wednesday will see the figures for January released, with markets expecting inflation to have slowed from 0.4% to 0.3% over the month and remain at 2.9% on an annual basis.
“With inflation still above the target, policymakers seek more evidence of disinflation before considering rate cuts,” IG analysts noted, with no Fed cuts priced in until June.
“However, tariff, tax, and spending policies under the Trump administration add some uncertainty to inflation risks.”
The UK economy will then emerge in the spotlight on Thursday, as December and fourth quarter gross domestic product growth figures are unveiled.
After flatlining in the previous two months, the Bank of England slashed its forecast for UK economic growth this year as it cut interest rates.
According to Trading Economics, expectations are for another month of just 0.1% growth, leaving the economy contracting by 0.1% over the quarter.
“Growth conditions still face stagnation risks,” IG added, “if GDP returns to contraction, it will likely increase calls for further easing” as markets anticipate another rate cut in May.
Retail sales from both sides of the Atlantic, alongside Eurozone gross domestic product data will also be in focus next week.