Facebook has had a fair share of negative news headlines in recent times with lawsuits filed against the company and calls to improve the monitoring of information that is posted on the social media platform. Despite that, the share price of Facebook hit an all-time high this week after trading at above $314 per share for the first time during the trading day on Thursday. With the negative headlines, there is also a level of optimism about the future of the company with revenue numbers expected to increase in 2021.
Q4 2020– revenue growth Last year, the company saw a substantial slowdown in revenue growth in Q2 due to the COVID-19 pandemic when it saw a significant reduction in its advertising side of the business. However, Q4 revenue rose by 33% year-over-year, a significant increase from 22% growth in Q3 and 11% in Q2. ''This was a strong quarter for our business, as the acceleration of online commerce we’ve seen during the pandemic continued into the holiday season. Our total revenue for Q4 was $28.1 billion, which is a 33% year-over-year increase.
Our fastest growth rate in over two years. After a really difficult year for so many businesses, this holiday period was important. And while many businesses are still struggling, the good news is that Q4 was stronger than expected for retail'', Sheryl Sandberg, Facebook’s COO explained Q4 performance during its earning call back in January.
The share price is up by around 14% since the beginning of the year. Facebook – YTD Source: TradingView Price target increase Deutsche Bank recently increased their price target for Facebook from $355 to $385 and maintained a ''buy'' rating for the social media giant following positive feedback from advertisers and Mark Zuckerberg’s positive comments about more e-commerce moving onto the platform. Deutsche Bank data checks show that advertisers have continued to spend on the platform in Q1 of 2021.
Facebook report Q1 2021 earnings on 28 th April. You can trade Facebook (FB) and many other stocks from the ASX, NYSE, and the NASDAQ with GO Markets as a Share CFD. Click here for more information.
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By
Klavs Valters
Account Manager, GO Markets London.
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In 2025, the S&P 500 traded around 6,835 and was up approximately 16% year to date (YTD). Market direction remained most sensitive to Federal Reserve expectations, inflation data and the earnings outlook, with returns also shaped by mega-cap tech leadership and the broader AI narrative. The index pulled back from earlier December highs, but it has so far held above key major moving averages (MA).
Key 2025 drivers included:
Fed expectations and inflation: Inflation cooled through the year but remained sticky around 2.5% to 3%. A Fed easing bias likely supported price to earnings (P/E) multiples and “risk-on” positioning. More recently, markets appeared increasingly rate-sensitive, with the decreased likelihood of an additional rate cut until March 2026.
Earnings and guidance: Corporate earnings remained strong quarter on quarter. Recent Q3 results reportedly saw over 80% of the S&P 500 beat earnings per share (EPS) expectations. For Q4, the estimated year-over-year earnings growth rate is 8.1%, despite ongoing concerns around import tariffs and potential margin pressure.
Index leadership and breadth: Returns were heavily influenced by mega-cap tech and AI beneficiaries, even as broader market breadth appeared less consistent at points through the year.
Policy headlines and volatility: Trade and tariff headlines drove sharp moves, particularly earlier in the year. Some investors pointed to the “TACO” trade, with rapid recoveries after policy proposals were softened. Over time, similar shocks appeared to have less impact as the market became somewhat desensitised.
Valuations and sensitivity: The forward 12-month P/E ratio for the S&P 500 is 22, above the 5-year average (20.0) and above the 10-year average (18.7). That gap kept valuation sensitivity, especially in AI-linked names, firmly in focus.
Current state
The S&P 500 is about 1% below record highs hit earlier in December. That could indicate the broader uptrend remains in place, with a move back toward the recent highs one possible scenario if momentum improves. Despite the recent retracement, the index remains above all key major moving averages (MA). The latest bounce followed lower than expected CPI numbers earlier this week, alongside continued, and to some, surprising optimism about what may come next.
What to watch in January
Q4 earnings from mid-January: Results and guidance may help clarify whether valuations are being supported by forward expectations.
AI narrative and positioning: With AI-linked mega-caps carrying a large share of market capitalisation, changes in sentiment or expectations could have an outsized impact on index performance.
US jobs and CPI data: The latest US jobs report reportedly points to the highest headline unemployment rate since 2021. Cooling inflation this week may keep markets alert to shifts in rate cut timing, particularly around the March decision.
S&P 500 daily chart
Source: TradingView
Major FX pairs
Source: Adobe Images
AUD/USD
AUD/USD has been choppy in 2025. Since the “redemption day” drop in April, the move has looked more like a steady grind higher than a clean upside trend.
Key levels Recent peaks in early September and mid-December highlight resistance near 0.6625. Support has been evident around 0.6425, where price bounced over the last month.
What is supporting the bounce That support test coincided with stronger than expected jobs and inflation data, lifting expectations that the Reserve Bank of Australia (RBA) may raise rates during 2026 rather than cut again. The latest pullback looks contained so far, with buying interest already visible and price still above key longer-term moving averages.
What could drive a breakout The pair remains range-bound, but the tilt is still constructive. If Chinese data stays firm, metals prices hold up, and the central bank outlook remains relatively hawkish, a break above resistance could gain more traction.
AUD/USD daily chart
EUR/USD
After early 2025 euro strength, EUR/USD has mostly consolidated since June in a roughly 270 pip range. This month tested 1.18 resistance, reaching highs not seen since September.
What price is doing now The recent pullback still lacks strong downside conviction. Some technical analysts refer to the 1.17 area as a near-term reference level.
What could come next If price holds 1.17 and buyers step back in, another push toward 1.18 is possible. One view is that the European Central Bank (ECB) could be less inclined to ease in 2026, which could be consistent with a firmer EUR/USD scenario. Broader analyst commentary also suggests the euro may stall rather than collapse against the US dollar, although outcomes remain data and policy dependent.
EUR/USD daily chart
USD/JPY
Year-to-date picture USD/JPY is close to flat overall for the year. After US dollar weakness in Q1, the pair reversed higher and now sits just below resistance near 158.
Rates remain the main driver Rate differentials still favour the US dollar. The Bank of Japan (BOJ) held steady for much of the period despite expectations it might act, and the recent rate increase was modest. Policy has only moved marginally away from zero.
What could shift the balance Rate differentials remain a key influence. Without a clearer shift in BOJ policy, the JPY may find it difficult to sustain a rebound. Some market commentators cite 154.20 as a chart reference level.
2025 has seen a material decline in the fortunes of the greenback. A technical structure breakdown early in the year was followed by a breach of the 200-day moving average (MA) at the end of Q1. The index then entered correction territory, printing a three-year low at the end of Q2.
Since then, we have seen attempts to build a technical base, including a re-test of the end-of-June lows in mid-September. However, buying pressure has not been strong enough to push price back above the technically critical and psychologically important 100 level.
What the levels suggest from here
As things stand, the index remains more than 10% lower for 2025. On this technical view, the index may revisit the 96 area. However, technical levels can fail and outcomes depend on multiple factors.
US dollar index
Source: TradingView
The key question for 2026
The key question remains: are we likely to see further losses in the early part of next year and beyond, or will current support hold?
We cannot assess the US dollar in isolation and any outlook is shaped by internal and global factors, not least its relative strength versus other major currencies. Many of these drivers are interrelated, but four potential headwinds stand out for any US dollar recovery. Collectively, they may keep downside pressure in play.
Four headwinds for any US dollar recovery
1. The US dollar as a safe-haven trade
One scenario where US dollar support has historically been evident is during major global events, slowdowns and market shocks. However, the more muted response of the US dollar during risk-off episodes this year suggests a shift away from the historical norm, with fewer sustained US dollar rallies.
Instead, throughout 2025, some investors appearedto favour gold, and at other times, FX and even equities, rather than into the US dollar. If this change in behaviour persists through 2026, it could make recovery harder, even if global economic pressure builds over the year ahead.
2. US versus global trade
Trade policy is harder to measure objectively, and outcomes can be difficult to predict. That said, trade battles driven by tariffs on US imports are often viewed as an additional potential drag on the US dollar.
The impact may be twofold if additional strain is placed on the US economy through:
a slowdown in global trade volumes as impacted countries seek alternative trade relationships, with supply chain distortions that may not favour US growth
pressure on US corporate profit margins as tariffs lift costs for importers
3. Removal of quantitative tightening
The Fed formally halted its balance sheet reduction, quantitative tightening (QT), as of 1 December 2025, ending a program that shrank assets by roughly US$2.4 trillion since mid-2022.
Traditionally, ending QT is seen as marginally negative for the US dollar because it stops the withdrawal of liquidity, can ease global funding conditions, and may reduce the scarcity that can support dollar demand. Put simply, more dollars in the system can soften the currency’s support at the margin, although outcomes have varied historically and often depend on broader financial conditions.
4. Interest rate differential
Interest rate differential (IRD) is likely to be a primary driver of US dollar strength, or otherwise, in the months ahead. The latest FOMC meeting delivered the expected 0.25% cut, with attention on guidance for what may come next.
Even after a softer-than-expected CPI print, markets have been reluctant to price aggressive near-term easing. At the time of writing, less than a 20% chance of a January cut is priced in, and it may be March before we see the next move.
The Fed is balancing sticky inflation against a jobs market under pressure, with the headline rate back at levels last seen in 2012. The practical takeaway is that a more accommodative stance may add to downward pressure on the US dollar.
Current expectations imply around two rate cuts through 2026, with the potential for further easing beyond that, broadly consistent with the median projections shown in the chart below. These are forecasts rather than guarantees, and they can shift as economic data and policy guidance evolve.
Source: US Federal Reserve, Summart of Economic Projections
The “Magnificent Seven” technology companies are expected to invest a combined $385 billion into AI by the end of 2025.
Microsoft is positioning itself as the platform leader. Nvidia dominates the underlying AI infra. Google leads in research. Meta is building open-source tech. Amazon – AI agents. Apple — on-device integration. And Tesla pioneering autonomous vehicles and robots.
The “Big 4” tech companies' AI spending alone is forecast at $364 billion.
With such enormous sums pouring into AI, is this a winner-take-all game?
Or will each of the Mag Seven be able to thrive in the AI future?
Microsoft: The AI Everywhere Strategy
Microsoft has made one of the biggest bets on AI out of the Mag Seven — adopting the philosophy that AI should be everywhere.
Through its deep partnership with OpenAI, of which it is a 49% shareholder, the company has integrated GPT-5 across its entire ecosystem.
Key initiatives:
GPT-5 integration across consumer, enterprise, and developer tools through Microsoft 365 Copilot, GitHub Copilot, and Azure AI Foundry
Azure AI Foundry for unified AI development platform with model router technology
Copilot ecosystem spanning productivity, coding, and enterprise applications with real-time model selection
$100 billion projected AI infrastructure spending for 2025
Microsoft’s centrepiece is Copilot, which can now detect whether a prompt requires advanced reasoning and route to GPT-5's deeper reasoning model.
This (theoretically) means high-quality AI outputs become invisible infrastructure rather than a skill users need to learn.
However, this all-in bet on OpenAI does come with some risks. It is putting all its eggs in OpenAI's basket, tying its future success to a single partnership.
Elon Musk warned that "OpenAI is going to eat Microsoft alive"[/caption]
Google: The Research Strategy
Google’s approach is to fund research to build the most intelligent models possible. This research-first strategy creates a pipeline from scientific discovery to commercial products — what it hopes will give it an edge in the AI race.
Key initiatives:
Over 4 million developers building with Gemini 2.5 Pro and Flash
Ironwood TPU offering 3,600 times better performance compared to Google’s first TPU
AI search overviews reaching 2 billion monthly users across Google Search
DeepMind breakthroughs: AlphaEvolve for algorithm discovery, Aeneas for ancient text interpretation, AlphaQubit for quantum error detection, and AI co-scientist systems
Google’s AI research branch, DeepMind, brings together two of the world's leading AI research labs — Google Brain and DeepMind — the former having invented the Transformer architecture that underpins almost all modern large language models.
The bet is that breakthrough research in areas like quantum computing, protein folding, and mathematical reasoning will translate into a competitive advantage for Google.
Today, we're introducing AlphaEarth Foundations from @GoogleDeepMind , an AI model that functions like a virtual satellite which helps scientists make informed decisions on critical issues like food security, deforestation, and water resources. AlphaEarth Foundations provides a… pic.twitter.com/L1rk2Z5DKk
Meta has made a somewhat contrarian bet in its approach to AI: giving away their tech for free. The company's Llama 4 models, including recently released Scout and Maverick, are the first natively multi-modal open-weight models available.
Key initiatives:
Llama 4 Scout and Maverick - first open-weight natively multi-modal models
AI Studio that enables the creation of hundreds of thousands of AI characters
$65-72 billion projected AI infrastructure spending for 2025
This open-source strategy directly challenges the closed-source big players like GPT and Claude. By making AI models freely available, Meta is essentially commoditizing what competitors are trying to monetize. Meta's bet is that if AI models become commoditized, the real value will be in the infrastructure that sits on top. Meta's social platforms and massive user base give it a natural advantage if this eventuates.
Meta's recent quarter was also "the best example to date of AI having a tangible impact on revenue and earnings growth at scale," according to tech analyst Gene Munster.
H1 relative performance of the Magnificent Seven stocks. Source: KoyFin, Finimize
However, it hasn’t been all smooth sailing for Meta. Their most anticipated release, Llama Behemoth, has all but been scrapped due to performance issues. And Meta is now rumored to be developing a closed-source Behemoth alternative, despite their open-source mantra.
Amazon: The AI Agent Strategy
Amazon’s strategy is to build the infrastructure for AI that can take actions — booking meetings, processing orders, managing workflows, and integrating with enterprise systems.
Rather than building the best AI model, Amazon has focused its efforts on becoming the platform where all AI models live.
Key initiatives:
Amazon Bedrock offering 100+ foundation models from leading AI companies, including OpenAI models.
$100 million additional investment in AWS Generative AI Innovation Center for agentic AI development
Amazon Bedrock AgentCore enabling deployment and scaling of AI agents with enterprise-grade security
$118 billion projected AI infrastructure spending for 2025
The goal is to become the “orchestrator” that lets companies mix and match the best models for different tasks.
Amazon’s AgentCore will provide the underlying memory management, identity controls, and tool integration needed for these companies to deploy AI agents safely at scale.
This approach offers flexibility, but does carry some risks. Amazon is essentially positioning itself as the middleman for AI. If AI models become commoditized or if companies prefer direct relationships with AI providers, Amazon's systems could become redundant.
Nvidia: The Infra Strategy
Nvidia is the one selling the shovels for the AI gold rush. While others in the Mag Seven battle to build the best AI models and applications, Nvidia provides the fundamental computing infrastructure that makes all their efforts possible.
This hardware-first strategy means Nvidia wins regardless of which company ultimately dominates. As AI advances and models get larger, demand for Nvidia's chips only increases.
Key initiatives:
Blackwell architecture achieving $11 billion in Q2 2025 revenue, the fastest product ramp in company history
New chip roadmap: Blackwell Ultra (H2 2025), Vera Rubin (H2 2026), Rubin Ultra (H2 2027)
Data center revenue reaching $35.6 billion in Q2, representing 91% of total company sales
Manufacturing scale-up with 350 plants producing 1.5 million components for Blackwell chips
With an announced product roadmap of Blackwell Ultra (2025), Vera Rubin (2026), and Rubin Ultra (2027), Nvidia has created a system where the AI industry must continuously upgrade to Nvidia’s newest tech to stay competitive.
This also means that Nvidia, unlike the others in the Mag Seven, has almost no direct AI spending — it is the one selling, not buying.
However, Nvidia is not indestructible. The company recently halted its H20 chip production after the Chinese government effectively blocked the chip, which was intended as a workaround to U.S. export controls.
Apple: The On-Device Strategy
Apple's AI strategy is focused on privacy, integration, and user experience. Apple Intelligence, the AI system built into iOS, uses on-device processing and Private Cloud Compute to help ensure user data is protected when using AI.
Key initiatives:
Apple Intelligence with multi-model on-device processing and Private Cloud Compute
Enhanced Siri with natural language understanding and ChatGPT integration for complex queries
Direct developer access to on-device foundation models, enabling offline AI capabilities
$10-11 billion projected AI infrastructure spending for 2025
The drawback of this on-device approach is that it requires powerful hardware from the user's end. Apple Intelligence can only run on devices with a minimum of 8GB RAM, creating a powerful upgrade cycle for Apple but excluding many existing users.
Tesla: The Robo Strategy
Tesla's AI strategy focuses on two moonshot applications: Full Self-Driving vehicles and humanoid robots.
This is the 'AI in the physical world' play. While others in the Mag Seven are focused on the digital side of AI, Tesla is building machines that use AI for physical operations.
Tesla’s Optimus robot replicating human tasks
Key initiatives:
Plans for 5,000-10,000 Optimus robots in 2025, scaling to 50,000 in 2026
Robotaxi service targeting availability to half the U.S. population by EOY 2025
AI6 chip development with Samsung for unified training across vehicles, robots, and data centers
$5 billion projected AI infrastructure spending for 2025
This play is exponentially harder to develop than digital AI, and the markets have reflected low confidence that Tesla can pull it off.
TSLA has been the worst-performing Mag Seven stock of 2025, down 18.37% in H1 2025.
However, if Tesla’s strategy is successful, it could be far more valuable than other AI plays. Robots and autonomous vehicles could perform actual labour worth trillions of dollars annually.
The $385 billion Question
The Mag Seven are starting to see real revenue come in from their AI investments. But they're pouring that money (and more) back into AI, betting that the boom is just getting started.
The platform players like Microsoft and Amazon are betting on becoming essential infrastructure. Nvidia’s play is to sell the underlying hardware to everyone. Google and Meta compete on capability and access. While Apple and Tesla target specific use cases.
The $385 billion question is which of the Magnificent Seven has bet the right way? Or will a new player rise and usurp the long-standing tech giants altogether?
You can access all Magnificent Seven stocks and thousands of other Share CFDs on GO Markets.
As geopolitical narratives continue to simmer, US and European markets move into the rest of the week with three dominant drivers: US inflation data, the start of US earnings season, and an unusual Fed-independence headline risk after the DOJ subpoenaed the Federal Reserve.
Quick facts:
US consumer price index (CPI) and producer price index (PPI) are the key macro releases and are likely to impact the US dollar (USD) and other asset classes if there is a significant move from expectations.
JPMorgan reports Tuesday, with other major US banks through the week, as the Q4 reporting season gets underway.
Reporting around DOJ action involving the Fed, and Chair Powell’s prior testimony, created early market volatility on Monday, with markets sensitive to anything that may be perceived as undermining Fed independence.
President Trump announced this morning that any country doing business with Iran will face a 25% tariff on all business with the US, effective immediately.
Europe’s production and growth updates, including Eurozone industrial production and UK monthly GDP and trade data, are later in the week.
United States: CPI, Fed path, DOJ and Fed headline risk, and banks leading earnings
What to watch:
The US is carrying the highest event density in global data releases this week. CPI and PPI will both be watched for moves away from expectations.
Any meaningful surprise can shift Fed policy expectations. Markets are currently pricing a lower likelihood of a March rate cut (under 30%) than this time last week, based on fed funds futures probabilities tracked by CME FedWatch.
Bank earnings may set the tone for the reporting season as a whole. Forward guidance is likely to be as important as Q4 performance, with valuations thought to be high after another record close in the S&P 500 overnight.
Key releases and events:
Tue 13 Jan (Wed am AEDT): CPI (Dec) (high sensitivity)
Tue 13 Jan (Wed am AEDT): JPMorgan earnings before market open (high sensitivity for banks and risk tone)
Wed to Thu: additional large-bank earnings cluster (high sensitivity for financials sentiment)
Wed 14 Jan (Thu am AEDT): US PPI
Thu 15 Jan (Fri am AEDT): US weekly unemployment
Throughout the week: Fed member speeches
How markets may respond:
S&P 500 and US risk tone: US indices are near record levels. The S&P 500 closed at 6,977.27 on Monday. Hotter-than-expected inflation can pressure growth and small-cap equities in particular, and weigh on the market broadly. Softer inflation can support further risk-on behaviour.
USD: Inflation data is the obvious driver this week for the greenback, but any continuation of DOJ and Fed developments, or geopolitical escalation, may introduce additional USD influences.
With the USD testing the highest levels seen in a month, followed by some light selling yesterday, some volatility looks likely. Gold has also been bid as a potential safety trade and hit fresh highs in the latest session, suggesting demand for defensive exposure remains present.
Earnings (banks): In a market already priced near highs, results can still create volatility if they are not accompanied by supportive earnings per share (EPS), revenue and forward guidance. Financials will likely see the first-order response, but any early pattern in results and guidance can influence the broader market beyond the first few days.
UK and Eurozone: growth data influence amid continuing equity strength
What to watch:
In a week where Europe may be driven primarily by events in the US and geopolitical narrative, the Eurozone industrial production print is still a noteworthy local release.
In the UK, monthly GDP and trade numbers on Thursday may influence both the FTSE 100 and the pound, particularly if there is any meaningful surprise.
Key releases and events:
Eurozone
Wed 14 Jan: Eurozone industrial production (Nov 2025) (medium sensitivity for cyclical sectors)
UK
Thu 15 Jan: GDP monthly estimate (Nov 2025) (high sensitivity for GBP and UK rate expectations)
Thu 15 Jan: UK trade (Nov 2025) (low to medium sensitivity)
How markets may respond:
EUR spillover from the US: Despite light Eurozone data, the US response is likely to matter most this week, with the US dollar index a major driver of broader G10 FX direction.
DAX (DE40): Germany’s index is also trading at or near record levels and closed at 25,405 on Monday. (2) If the index is extended, it may react more to global rate moves and shifts in perceived risk.
FTSE 100 and GBP: The FTSE hit a new high in the overnight session, driven particularly by materials and mining stocks. (5) Any GDP surprise can re-price GBP and UK equities quickly in an environment where growth concerns persist.
Wed 14 Jan: US CPI, US bank earnings kick-off (notably JPMorgan)
Wed 14 Jan: Eurozone industrial production (Nov 2025)
Thu 15 Jan: UK monthly GDP (Nov 2025) and UK trade (Nov 2025), US bank earnings continue
Fri 16 Jan: US weekly unemployment, US bank earnings continue
Bottom line
If US CPI surprises higher, markets may lean toward higher-for-longer interest rate pricing, which can pressure equity multiples and lift rates volatility.
If bank earnings are solid but guidance is cautious, equities can still see two-way swings given index levels near records and high valuations.
If DOJ and Fed headlines escalate, they may override normal data reactions to some degree. That could increase demand for perceived safe havens such as gold and lift FX volatility.
For Europe, Eurozone production (Wed) and UK GDP and trade (Thu) are the key local data. The region is still likely to trade primarily off US outcomes and broader risk sentiment.
Asia-Pacific markets start the week with sentiment shaped by China’s mid-week trade data, USDJPY (USD/JPY) as Japan’s key volatility channel, and offshore reporting influencing Australian equities. With a light domestic data calendar, global events may do most of the work on risk appetite.
Quick facts:
China's mid-week trade data is the primary regional risk event, with imports monitored for signs of domestic demand stability.
USD/JPY remains the key volatility channel, which may influence Nikkei performance.
Australian equities lack major domestic catalysts, leaving the ASX and AUD direction sensitive to China outcomes, geopolitics and US bank earnings.
This week’s Asia-Pacific focus is less about local policy and more about the transmission channels that typically set the tone.
For China, trade data may shape the growth narrative.
For Japan, the USD/JPY direction may influence equity momentum.
For Australia, offshore earnings, commodities and geopolitics may dominate in the absence of major domestic catalysts.
China: Shanghai may be influenced by trade data
What to watch:
With mid-week Chinese trade data, markets may view the release as a gauge of whether policy support is translating into growth activity or slowing any downturn.
Shanghai Composite: Stronger trade data could support sentiment, though the quality and perceived longevity of any improvement may matter. Weak imports would likely be read as continued softness in domestic demand.
Australia (resources and AUD): China trade and credit tone can feed directly into bulk commodity expectations and regional risk appetite, with potential flow-through to ASX miners and AUDUSD (AUD/USD).
With no major policy decision scheduled, and the producer price index (PPI) the main data point, Japan’s influence this week may run primarily through USD/JPY moves after US data releases, and broader geopolitical headlines, particularly as markets reopen after Monday’s public holiday.
Key releases:
Wed 14 Jan: Preliminary machine tool orders, year on year (y/y) (low sensitivity)
Thu 15 Jan: PPI (medium sensitivity)
How markets may respond:
USD/JPY: The pair ended last week around 158, near recent highs. Moves can be volatile; markets will watch whether the pair holds recent strength or retraces, particularly around prior trading ranges.
Nikkei 225: The index hit a record high early last week before a modest two-day pullback, then closed higher on Friday. Equity momentum, often closely tied to FX stability, may be influenced by the strength or otherwise of USD/JPY.
Australia: offshore drivers dominate in a lighter data week
What to watch:
In the absence of significant domestic data releases, Australian markets may be more exposed to external influences. The main themes are China trade data, geopolitics, commodity prices and the start of the US earnings season, with banks in focus.
Thu 15 Jan: Melbourne Institute (MI) inflation expectations (low sensitivity)
How markets may respond:
ASX 200: The index has been consolidating around the 8,700–8,800 area (approx.). Local financial stocks may react to inferences made from US bank earnings. Stocks such as Macquarie Group are typically more sensitive to global market conditions and activity in investment markets, often drawing comparisons with US peers such as JPMorgan Chase (JPM).
AUDUSD (AUD/USD): AUD/USD has pulled back after last week’s gains and is trading near recent highs. Technical commentary is mixed, and price action can change quickly around major offshore events.
South Korea is expecting an interest rate decision on Thursday. Any deviation from market expectations for no change (currently 2.5% per Trading Economics) could create a minor FX ripple in regional currency pairs.
Asia-Pacific calendar:
Mon 12 Jan: Japan public holiday
Tue 13 Jan: Australia consumer sentiment
Wed 14 Jan: China trade balance, exports and imports
Thu 15 Jan: Bank of Korea rate decision; Japan PPI; Australia inflation expectations
Bottom line
If China trade and credit data stabilise, regional equities may move higher, with AUD and ASX resource stocks among the key sensitivity points.
If USD/JPY extends higher, the Nikkei may remain supported near highs, though FX volatility risk may increase.
If US bank earnings disappoint, ASX financials could face near-term pressure despite limited domestic data.
Information is accurate as at 23:00 AEDT on 11 January 2026. Economic calendar events, charts and market price data are sourced from TradingView.
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