This is a Global Week Ahead that begins a New Year.

What will happen in 2023?

No one can be sure.

But the recent past is likely prologue.

On Dec. 22nd, the Huffington Post shared their five top international events across 2022.

Next, the Huffington Post’s biggest five stories outside the U.S. last year—

(1) Vladimir Putin’s War on Ukraine

Russian President Vladimir Putin invaded Ukraine on Feb. 24th, 2022.

Putin originally expected the war would be easily won by Russia, underestimating the force with which the Ukrainian people would fight back to protect their country as well as the degree of support they would receive from allies around the world.

The international community displayed solidarity by applying strong sanctions against Moscow and providing crucial military and financial help to Kyiv.

The U.S. alone has contributed significantly to Ukraine’s efforts. A new spending bill by the U.S. Congress includes an additional $44 billion in emergency funding for the country. If the package passes, the total amount of support the U.S. will have provided to Ukraine since the war began will top $100 billion, according to The New York Times.

Ukrainian President Volodymyr Zelenskyy also became an international symbol of fearless resistance to Russia’s aggression.

Zelenskyy visited Washington, D.C. the Wednesday before Christmas — his first international trip since the war began. He addressed lawmakers in a rare joint session of Congress, expressing gratitude to the U.S. for its continued support and noting how crucial it’s been in the fight against Russia.

“Your money is not charity. It’s an investment in global security and diplomacy that we handle in the most responsible way,” Zelenskyy said.

The Ukrainian leader also participated in a press conference alongside President Joe Biden at the White House, where Biden pledged to support Ukraine for “as long as it takes.”

While Ukraine has made significant gains in the conflict, by recapturing areas previously occupied by Russia in a successful counteroffensive this fall, Putin appears determined to keep fighting despite the embarrassing showing on the battlefield.

Putin has vowed to “protect [Russia] using all means available,” and at times hinted at being prepared to use nuclear weapons.

Russia has continued attacking Ukraine’s critical infrastructure, causing widespread blackouts and suffering.

Antonio Guterres, the United Nations secretary-general, on Monday appeared downbeat about the prospect of peace talks between the two countries anytime soon.

“I do believe that the military confrontation will go on, and I think we will have to still wait a moment in which serious negotiations for peace will be possible. I don’t see them in the immediate horizon,” Guterres said in his final press conference of the year.

The war has also had ripple effects on the entire world. Ukraine is one of the world’s biggest grain producers, and the ongoing war has at times disrupted the supply chain and increased food prices — felt more acutely by poorer nations.

Besides, Europe’s efforts to cut off Russian energy has left the continent having to find alternate sources of gas. That has also meant much higher prices for consumers this winter, feeding into high inflation recorded around the world.

(2) U.K. Political Turmoil

The United Kingdom has undoubtedly gone through a turbulent time in its politics with three prime ministers in the span of mere months.

Boris Johnson resigned as prime minister and leader of the Conservative Party in July following revelations about parties held in Downing Street while the country was under lockdowns and COVID-19 restrictions.

Additionally, there were allegations of sexual harassment against Chris Pincher, a Conservative member of Parliament whom Johnson had elevated to a key government position despite being aware of the accusations against him. This prompted the resignation of over 50 lawmakers from Johnson’s government and led to his downfall.

Following a leadership contest over the summer within the Tory Party, triggered by Johnson’s resignation, Liz Truss was elected prime minister in September. However, her unpopular economic plan spooked the markets and caused the value of the pound to tumble. Truss was eventually forced to resign in October, making her the shortest-serving prime minister in British history.

After Truss stepped aside, Rishi Sunak, a onetime Treasury secretary in Johnson’s cabinet and Truss’ leadership challenger over the summer, was picked to take over, making history as the first nonwhite British prime minister and the country’s first leader of South Asian descent.

(3) Queen Elizabeth’s Death

Queen Elizabeth II died in September at her residence of Balmoral Cottage, in Scotland, at the age of 96. Elizabeth served on the throne for 70 years, making her the longest-serving monarch in British history.

Thousands of British citizens queued for long hours outside Westminster Hall to pay their respects to the late queen.

Her eldest son, Charles, became king following her death.

Her funeral was attended by over 2,000 people, including world leaders like Biden and French President Emmanuel Macron.

Prince Harry and Meghan Markle — who have stepped down as working royals and have criticized the royal institution in a recent Netflix documentary series — traveled to the U.K. from America to attend the service.

(4) Brazil’s Presidential Election

Leftist Luiz Inácio Lula da Silva defeated far-right incumbent Jair Bolsonaro in Brazil’s presidential election.

While da Silva was in the lead in the first round, he did not manage to secure over 50% of the vote to win outright, which meant the two candidates headed to a runoff contest at the end of October.

Da Silva secured victory in the head-to-head contest by a narrow margin. But Bolsonaro has resisted accepting da Silva’s victory even as his supporters continue to protest the result.

Still, Bolsonaro’s loss has been cast as a rebuke of his four-year leadership, during which he attacked the country’s institutions and undermined Brazil’s democracy.

Da Silva previously served as president for seven years, from 2003 to 2010. He spent almost two years in prison but his corruption conviction was ultimately voided.

(5) China’s ‘Zero COVID’ Policy

The world continued to be challenged by the COVID-19 pandemic into 2022. Yet, the development of vaccines and therapeutics has eased the effects of the virus and helped restore a degree of normalcy in some countries around the world.

The country, though, that has continued making headlines with its response to the virus is China. For most of this year, China stuck to its aggressive “Zero COVID” policy, enforcing strict lockdowns and quarantine mandates as well as mass testing to stop the virus from spreading.

Epidemic control workers wear protective clothing to guard against the spread of COVID-19 as they drive on a nearly empty street with equipment in the Central Business District of Beijing on Nov. 23rd.

Epidemic control workers wear protective clothing to guard against the spread of COVID-19 as they drive on a nearly empty street with equipment in the Central Business District of Beijing on Nov. 23rd.

People took to the streets in late November, animated by reports of a deadly fire in an apartment building in Urumqi, which had been under lockdown for months, in an unprecedented show of rebuke to the tough policies and Chinese President Xi Jinping’s leadership.

Authorities have since eased some restrictions but experts have warned of the risks of fully reopening the country given the potential toll such action could take on its health system amid a potential rapid rise in COVID-19 cases and deaths.

China has managed to keep its reported COVID-19 toll low so far, compared to other countries, recording over 10,088,555 cases and 31,278 deaths since January 2020, according to World Health Organization data as of Tuesday.

China has so far not authorized mRNA shots, such as the ones produced by Pfizer and Moderna, for use by Chinese citizens, instead relying on domestically produced vaccines that are viewed as less effective at preventing infection and severe disease.

Some of the more vulnerable populations, including the elderly, have also resisted getting vaccinated, with the government making efforts to increase uptake for those age groups.

Top Zacks #1 Rank (STRONG BUY) Stocks

I noted a number of major international stocks atop of our Zacks #1 Rank large cap list.

(1) BHP Group (BHP Quick QuoteBHP - Free Report) : This is a $62 per share Australian mining stock. It has a market cap of $91.5B. I see a Zacks Value score of B, a Zacks Growth score of C and a Zacks Momentum score of C.

(2) Siemens (SIEGY Quick QuoteSIEGY - Free Report) : This is a $69 a share German industrial conglomerate. It has a market cap of $116.9B. I see a Zacks Value score of C, a Zacks Growth score of B and a Zacks Momentum score of F.

(3) America Movil (AMX Quick QuoteAMX - Free Report) : This is an $18 a share Mexican wireless telco stock. It has a market cap of $67.9B. I see a Zacks Value score of A, a Zacks Growth score of D and a Zacks Momentum score of A.

Will this be the year to make money on international stocks?

It could be a worthy idea.

Key Global Macro

Friday’s Federal non-farm report for DEC is the critical macro data event.

On Monday, there were no macro data releases, due to the New Year’s holiday.

On Tuesday, U.S. Construction Spending for NOV comes out.

On Wednesday, the U.S. ISM Manufacturing Index for DEC comes out.

U.S. Domestic Vehicle Sales for DEC also come out.

On Thursday, the U.S. ADP Employment Report for DEC comes out.

The U.S. Trade Balance for NOV also comes out.

On Friday, we get the U.S. Federal Employment Report for DEC.

The U.S. ISM Non-Manufacturing Composite for DEC also comes out.

U.S. Factory Orders for NOV comes out.

U.S. Durable Goods Orders for NOV come out.

In the Eurozone, we get the CPI reading for DEC and their Retail Sales report for NOV.

Conclusion

This is a four-day Global Week Ahead.

Clearly, the Friday U.S. Federal non-farm payroll report is the influential macro indicator.

That will set the tone for the FOMC and stock traders alike.

In addition, the retail sector job details — found in the DEC report — should  indicate how the U.S. holiday shopping season performed.

Typically, how the U.S. consumer acts is a harbinger of how the world’s consumers act.

Warm Regards,

John Blank