The market is eagerly anticipating the inflation report to see if the Fed's reactive effort to lower inflation through raising interest rates will be effective. Unfortunately, this approach has had little success over the years, suggesting that it is only a temporary fix and does not address the underlying causes of inflation. This first CPI report of the year will be of great importance, as fund managers will need to adjust their portfolios to align with the new expectations if they have not already done so.

EQUITY

TSMC, the world's largest contract chipmaker and a major supplier to Apple, saw a 78% increase in its fourth-quarter net profit, primarily due to the surge in demand for advanced chips amid the ongoing global chip shortage caused by the pandemic-driven sales of smartphones and laptops.

GOLD

Gold prices remain at an eight-month high as markets position for data that is widely expected to show further easing in U.S. inflation, while the risk of rising interest rates and the uncertain economic outlook in China limit bigger gains in the near-term.

OIL

Oil prices rose on Thursday, driven by increased demand for oil in China and heightened worries over reduced production in Russia as a result of sanctions. However, prices were kept in check by upcoming inflation data from the US and further potential restrictions on Russian fuel sales set to come into effect in February.

CURRENCY

Global currency markets have seen a weakening of the US dollar against its peers, such as the euro, UK pound, offshore Chinese yuan, and other riskier assets like the Australian and New Zealand dollars, due to expectations that the Federal Reserve may be nearing the end of its aggressive monetary policy tightening campaign.