Overall Market Backdrop, January:
- In December, U.S. inflation exceeded predictions, reaching 3.4% annually – surpassing the expected 3.2%. This development dampened market expectations of an imminent decrease in interest rates, originally anticipated for March.
- Official government reports indicate a 5.2% growth in China’s GDP for 2023, but analysts outside China express scepticism, offering estimates as low as 1.5%.
- Attacks on vessels in the Red Sea along Yemen’s coast by the Houthis are progressively jeopardising global trade, causing delays and increasing transportation costs.