Global Markets Rally on Positive CPI Data Ahead of Trump's Inauguration on January 17, 2025

On January 15, 2025, global markets experienced a resurgence in risk appetite following a favorable reading of the U.S. Consumer Price Index (CPI). This optimism continued into January 16, as financial institutions reported stronger-than-expected trading results, marking the beginning of the fourth-quarter earnings season. The positive sentiment was further bolstered by a less aggressive core CPI report, which has led to renewed expectations regarding potential Federal Reserve rate cuts. However, on January 16, the session saw mixed results across major global exchanges, influenced by weaker-than-expected economic activity data from the U.S. Looking ahead to January 17, investors are preparing for the inauguration of President-elect Donald Trump, which is anticipated to bring significant changes in tariffs, taxes, and immigration policy. The earnings season appears to be off to a strong start, particularly among banks, as investors remain focused on the implications of upcoming executive orders from the new administration.