📣 Markets Watch: Inflation Takes the Lead as Markets Digest Early-Year Data (Jan 12–18, 2026)

What to Watch This Week: Key Events: The second full trading week of 2026 shifts focus firmly toward inflation and policy expectations. After the initial year-start reset, markets are reassessing whether growth and price pressures align with current central-bank guidance. With liquidity largely normalised, reactions to data surprises may become more directional compared with the opening week of the year.

 Key Global Economic Events to Watch (Jan 12–18)

📌 Additional Factors to Monitor

• Inflation releases across the U.S. and China will be closely watched for confirmation on whether early-2026 price pressures are stabilising or re-accelerating.
• With fewer central-bank meetings this week, markets may take stronger directional cues directly from macro data rather than policy commentary.

🧭 Under-Radar / High-Importance Signals Ahead

• Next Monday (Jan 19): Global markets will be closed in the U.S. for Martin Luther King Jr. Day, potentially impacting liquidity and carry-over sentiment from this week’s inflation data.
• Following Week: Preliminary PMI data (late Jan) may begin to influence positioning as traders assess whether inflation trends are feeding into activity and growth momentum.

🔎 Key Themes for the Week

• Inflation Re-pricing: CPI and PPI outcomes may reshape expectations for the timing and pace of policy adjustments in 2026.
• Data-Driven Direction: With limited policy events, markets are likely to react more directly to economic prints.
• Early-Year Positioning: January portfolio rebalancing remains a factor, potentially amplifying moves in FX, rates, and broader risk assets.

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