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.
Euro zone corporate lending slumps from post-crisis maximum
In June, surge in bank loans to euro zone corporations decreased abruptly, though household lending kept to a post-crisis maximum and a major money supply indicator, normally predicting future economic activity, strengthened, as European Central Bank data demonstrated on Thursday.
In June, corporate lending in the 19-country currency bloc went up by 2.1%, a huge slowdown from last month’s 2.5%, when surge was at its most impressive pace since 2009.
The European Central Bank doesn’t put much value on single data points. Nevertheless, the slowdown might worry policymakers because the rebound in lending had been a firm indicator of the revival as well as the effectiveness of ultra-easy monetary policy.
Meanwhile, in June, lending to households ascended by 2.6%, unchanged from last month, when it demonstrated its best pace since March 2009.
The previous month, the annual surge rate of the M3 measure of money, which circulates in the euro zone, and predicts economic activity, rallied to 5% from May’s outcome of 4.9%, which fits expectations for 5% in a Reuters survey.
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.