We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
China is on the verge of extending transition phase for cross-border retail
China is geared up towards delaying enforcing tougher rules on the country's rapidly growing cross-border retail market until the end of next year. Undoubtedly, it’s going to be a boost for global companies, which have been tapping the round-about route into the second economy of the world.
Cross border-retail sales, or in other words, goods either shipped to shoppers in the Asian country from overseas or delivered from bonded warehouses of free-trade zones within the country, are believed to reach 758 billion Yuan, as data from McKinsey & Co and iResearch states.
Planned fresh rules will drastically lift taxes as well as regulations on goods sold via cross-border channels, although the Chinese government is going to extend a transition phase for implementation by one year, as China's ruling State Council told on Wednesday. The given move will provide retailers with more time to prepare and adapt.
Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
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The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.