This week has seen a relatively calm demeanour following the recent flurry of central bank interest rate decisions.

This week is packed with central bank interest rate decisions, giving markets plenty to digest.

The FTSE 100 reached its highest level since May last year rising by 1% yesterday, driven by optimism arising from the slowdown in wage growth which heightened expectations for forthcoming interest rate cuts.

In the US, markets have taken a breather after last week’s rally, gearing up for a busy week featuring the latest Q4 GDP estimate, the Federal Reserve’s preferred measure of inflation, Core PCE as well as manufacturing PMIs.

It has been a relatively calm week for markets thus far, with the US observing Presidents’ Day on Monday.

Key Consumer Price Index (CPI) data was released from the US and the UK this week as it was revealed they were at the forefront of the markets.

In the absence of significant economic data this week investors deliberated on Fed Chair Jay Powell’s recent comments over the weekend.

Significant news came out of the Eurozone this week in the form of GDP growth figures.

Following Japan’s core CPI coming in for December at 2.3% – in line with market expectations and above their 2% target – the Bank of Japan revealed on Tuesday that it would be leaving interest rates unchanged for the time being.

Suggesting a relative softening in the UK labour market over the recent period, both wage growth and vacancies were reported to have fallen in the latter part of 2023.