Investors are keenly awaiting potential details of a US housing stimulus package rumoured to be unveiled by President Donald Trump at the World Economic Forum in Davos. Trump previously promised aggressive housing reforms, sparking interest in stocks like James Hardie. The World Economic Forum will also feature Australian business leaders such as Fortescue’s Andrew Forrest and BHP’s Mike Henry. Fortescue is a global metals and mining company. BHP, formerly known as Broken Hill Proprietary, is the world’s largest mining company.
Meanwhile, the Australian sharemarket is expected to open flat. Locally, all eyes will be on the upcoming employment figures, which could influence the Reserve Bank of Australia’s (RBA) decision on interest rates at its February meeting. Currently, the market is pricing in a one-in-three chance of a rate hike. Westpac anticipates the data will reveal an addition of 40,000 jobs, with the unemployment rate potentially reaching 4.4 per cent.
Globally, investors are also monitoring Intel’s fourth-quarter earnings, which could impact ASX tech stocks. This follows positive forecasts from Taiwan Semiconductor Manufacturing, easing concerns about AI-related demand. Other significant data releases include Canadian inflation, Chinese GDP growth, UK inflation, and US personal spending figures. The Bank of Japan is expected to hold rates steady after a recent increase.
Analysts caution that markets remain sensitive to geopolitical developments, particularly any escalations involving the US. Unpredictable foreign policy decisions could trigger risk-off flows, potentially overshadowing fundamental economic signals. Investors should, therefore, be prepared for market volatility driven by headline news.
