Investing.com — This week’s inflation data will likely test investors against the backdrop of Friday’s strong jobs report and uncertainty over Donald Trump’s policy plans. Earnings season has begun, and oil prices are at multi-month highs as energy traders prepare for supply disruptions. Here’s your look at what’s happening in the markets in the coming week.

1. Inflation data

With the revival of inflation one of the key risks facing equity markets, Wednesday’s CPI data will be closely watched.

Markets have pushed back expectations for the Federal Reserve’s next rate cut until June after Friday’s unexpectedly strong jobs report showed payrolls increased last month, more than forecasts of 160,000. and fell by 4.1%.

Economists expect the December CPI to show a year-over-year increase.

While the Fed is confident that inflation has moderated enough to begin cutting interest rates in September, the pace of annual inflation remains above the Fed’s 2% target. The Fed now projects inflation to rise to 2.5% by 2025.

Minutes from the Fed’s latest meeting, released Wednesday, show policymakers are concerned Trump’s trade and immigration policies could delay efforts to bring inflation back on target.

2. Big banks are starting to make money

JPMorgan (NYSE: ), Wells Fargo (NYSE:), Citigroup (NYSE: ) and Goldman Sachs (NYSE: ) will report fourth-quarter earnings on Wednesday, while Bank of America (NYSE: ) and Morgan Stanley (NYSE: ) reports results on Thursday.

Strong investment banking fees, strong trade profits and easing pressure to boost deposit rates are all expected to make for a long period of earnings for US banks.

Expectations for bank results were also boosted after Trump’s election victory. The president-elect is expected to initiate a wave of deregulation and business-friendly tax reforms, which could boost banks’ profitability.

The company’s revenue is expected to rise nearly 10% in the quarter from a year earlier, according to LSEG IBES data cited by Reuters.

3. UK inflation

UK inflation data on Wednesday will come into focus after last week’s sell-off of UK government bonds, known as gilts, has increased pressure on the new Labor government as it seeks to stimulate the moribund economy.

British government bond yields have risen steadily since September, reflecting reduced expectations of a Bank of England rate cut, more borrowing in the new government’s October 30 budget and more high yields on the US Treasury with Trump expected to continue a loose fiscal policy and raise tariffs.

The December CPI is expected to show an annual increase of , remaining above the Bank of England’s 2% target.

BoE officials’ comments could also be seen by Deputy Governor Sarah who is expected to speak on Tuesday and MPC member Alan Taylor due to give comments the following day.

4. China data

China will release a slew of data over the weekend that will give investors a chance to see how the world’s second-largest economy is faring as it faces the blow of impending U.S. tariff hikes.

The data due on Friday is expected to confirm that the economy has met the 5% annual growth target for 2024, as previously announced by President Xi Jinping at the end of December.

Beijing will also release data on , and .

China’s Vice Finance Minister Liao Min said on Friday that Beijing has enough fiscal policy space and tools to support economic growth this year and it will increase spending to encourage investment.

5. Oil sanctions

Oil prices rallied more than 3% to a three-month high on Friday as traders braced for supply disruptions from the broadest package of US sanctions targeting oil revenues and Russian gas.

President Joe Biden’s administration has imposed new sanctions targeting Russian oil producers, tankers, brokers, traders and ports, seeking to hit every stage of Moscow’s oil production and supply chains. to distribute.

futures settled at $79.76 a barrel after crossing $80 a barrel for the first time since Oct.7. amounted to $76.57 per barrel.

The timing of the sanctions, before Trump’s inauguration on January 20, makes it likely that he will keep the sanctions in place and use them as a negotiating tool for a peace agreement with Ukraine, analysts said.