What is going on in this Global Week Ahead?

Markets and the news are certainly up and running again after a brief lull for the holidays, and the pace is now set to pick up even more.

Updates are coming on nearly all the big themes of the year, from AI to the U.S. economy, via Germany's fiscal transformation, all while speculating about the next surprise in global politics.

Next are Reuters’ five world market themes, re-ordered for equity traders—
 

(1) Starting Tuesday, Major U.S. Banks Kick Off Q4 Earnings Season

Major U.S. bank results kick off a fourth-quarter reporting season that is expected to close out a solid year of corporate profit growth.

The largest U.S. lender, JPMorgan Chase (JPM Quick QuoteJPM - Free Report) , reports on Tuesday, January 13, followed by Citigroup (C Quick QuoteC - Free Report) , Bank of America (BAC Quick QuoteBAC - Free Report) and Wells Fargo (WFC Quick QuoteWFC - Free Report) on Wednesday, and Goldman Sachs (GS Quick QuoteGS - Free Report) and Morgan Stanley (MS Quick QuoteMS - Free Report) on Thursday.

A surge in investment banking revenue as dealmaking accelerates is expected to bolster the banks' fourth-quarter results, while investors will focus on their commentary related to consumer spending as a crucial read into the broader economy's health.

Overall S&P 500 earnings are expected to have climbed about 9% in the fourth quarter from the year-earlier period, according to LSEG IBES, with investors anticipating another year of strong U.S. profit growth in 2026.
 

(2) On Jan. 15th, AI Bellwether Taiwan Semi Reports

Earnings by Taiwan Semiconductor Manufacturing (TSM Quick QuoteTSM - Free Report) on January 15 will be closely watched for signals of whether the artificial intelligence (AI) investment boom has further to run.

The world's #1 producer of advanced chips pushed global equities higher in October when it raised its annual sales forecast and posted a massive beat on third-quarter profit.

It has already reported estimate-beating revenue for the fourth quarter, and the supplier to tech heavyweights like Apple and Nvidia is expected to say full-year sales climbed 31% to $120.4 billion, according to the LSEG SmartEstimate.

That would come on the heels of Samsung Electronics projecting a three-fold surge in quarterly operating profit amid tight supply for conventional memory chips.

Reuters reported last month that Nvidia approached TSMC about ramping up production to help it meet soaring Chinese demand for its H200 AI chips.
 

(3) On Tuesday, 8:30 am ET, U.S. CPI Due for December

Speaking of the Fed, a crucial view into U.S. inflation trends will help investors gauge prospects for further near-term interest rate cuts, as the U.S. data flow returns to normal following a 43-day government shutdown that delayed or cancelled a number of key reports.

The U.S. Consumer Price Index (CPI) for December is due on Tuesday, January 13. The prior report showed consumer prices rose less than expected in the year to November, but households still faced affordability challenges.

Inflation has persistently remained above the Fed's 2% target, presenting a potential barrier to more monetary easing by the central bank, while some investors are wary of a resurgence of inflation.

The CPI report is among the last key releases ahead of the Fed's January 27-28 meeting. After cutting rates at each of its last three meetings of 2025, it is expected to hold rates steady, but markets are pricing in at least two more quarter-point cuts by the end of 2026.
 

(4) Germany’s DAX Sits at Record High

Germany stunned markets last March by launching a massive stimulus package, including a huge infrastructure investment fund and historic fiscal reforms.

Then-newly elected Chancellor Friedrich Merz further boosted hopes by positioning himself as a pro-business, growth-focused leader who would implement changes quickly for Europe’s largest economy.

The promise of big spending drew huge flows of capital into European markets last year, and Germany’s DAX (GDAXI) is still hitting record high after record high.

Almost a year on, many are asking what has happened in the real economy. German full-year GDP data, out January 15th, could shed some light.

After contracting for two consecutive years, annual GDP is expected to have inched higher in 2025, by +0.3% according to the OECD.
 

(5) The U.S. Intervention in Venezuela Puts Geopolitics on the Front Burner. What’s Next?

U.S. President Donald Trump's muscular intervention in Venezuela has set the stage for a year where geopolitical risk will dominate markets and shape economies around the globe.

The impact of Washington rewriting the rules in Latin America has so far mostly stirred energy markets. But it has fired up concerns about U.S. intentions towards other parts of the world — with Greenland topping the list.

U.S. Secretary of State Marco Rubio will meet with leaders of Denmark — of which Greenland is currently an autonomous territory — in days to come, while European leaders and NATO allies are scrambling to push back.

Domestic U.S. risk events are adding to a febrile mood for markets: The Supreme Court is set to deliver its verdict on the legality of Trump's tariffs, while a nomination for the chair of the U.S. Federal Reserve is expected imminently.
 

Zacks #1 Rank (STRONG BUY) Stocks

(1) Sony (SONY Quick QuoteSONY - Free Report) : This is a $25 a share stock, with a market cap of $151.3B. It is found in Zacks Audio-Video Production industry. There is a Zacks Value score of B, a Zacks Growth score of D, and a Zacks Momentum score of B.

(2) Analog Devices (ADI Quick QuoteADI - Free Report) : This is a $301 a share stock, with a market cap of $147.4B. It is found in the Zacks Semiconductor Analog and Mixed industry. There is a Zacks Value score of F, a Zacks Growth score of C, and a Zacks Momentum score of C.

(3) Seimens Energy (SMNEY Quick QuoteSMNEY - Free Report) : This is a $147 a share stock, with a market cap of $117.6B. It is found in the Zacks Alternative Energy industry. There is a Zacks Value score of D, a Zacks Growth score of A, and a Zacks Momentum score of C.
 

Key Global Macro

On Monday, Australia’s TD-MI inflation gauge for December (DEC) came in at +3.4%. The prior reading was +3.2% y/y, which is what analysts had been expecting for this report, as well.

On Tuesday, the NY Fed’s Williams gives a speech.

The U.K. ILO unemployment rate for November (NOV) comes out. 5.1% was the prior reading.

The U.S CPI for DEC comes out. The broad CPI is not expected to move from +2.7% y/y. The core ex-food & energy CPI mark may tick up to +2.7% y/y from +2.6% y/y.

On Wednesday, the U.S. PPI for DEC comes out. Expect +2.7% y/y.

U.S. Retail Sales for NOV comes out. The prior reading was +3.5% y/y.

On Thursday, Mainland China’s Retail Sales for DEC come out. The prior reading was a tepid +1.3% y/y mark.

On Friday, Mainland China’s real GDP growth rate for Q4 comes out. +4.8% y/y has been the annualized trend.
 

Conclusion

On January 7th, 2026, Zacks Research Director Sheraz Main supplied his Q4 earnings outlooks.

Here are his key points:

• The outlook for corporate earnings has been improving in recent quarters, as reflected in steadily rising earnings estimates. As the 2025 Q4 earnings season really gets underway in the coming days, the market will be looking for this favorable trend to not only remain in place, but actually expand beyond the few key sectors where it has been concentrated lately.
• For 2025 Q4, total S&P 500 earnings are currently expected to be up +7.9% from the same period last year on +8.2% higher revenues. This will be the 10th quarter of back-to-back positive earnings growth for the index.
• (3) Looking at the calendar year picture, total S&P 500 earnings are expected to grow by +12.9% in 2026, with the growth pace dropping to +9.3% when the Tech sector’s contribution is excluded.
• All 16 Zacks sectors are expected to enjoy positive earnings growth in 2026, the first time since 2018, with nine sectors expected to achieve double-digit growth, including Aerospace (+38.2%), Autos (+22.6%), Basic Materials (+20.3%), Tech (+19.9%), Transportation (+13.6%), and Industrials (+11.1%).
• Q4 earnings for the ‘Magnificent 7’ group of companies — which includes the likes of NVIDIA, Apple and Tesla — are expected to be up +17.3% from the same period last year on +16.5% higher revenues.

Enjoy trading and investing, across this Global Week Ahead.

Warm regards,

John Blank, PhD.
Zacks Chief Equity Strategist and Economist