What to Expect from Davos 2026 Meetings in Financial Markets: Major economic events January 18th to 25th 2026

This week marks a definitive week for markets, with the US Personal Consumption Expenditures (PCE) price index leading the show as the Fed’s favorite inflation gauge. We’re also witnessing the Davos 2026 meeting, with three key topics to be discussed.

In Europe, the UK’s growth rates and inflation data are set to be released by the Bank of England, in addition to the EU inflation report.

Meanwhile, markets are awaiting guidance from the Bank of Japan amid continued pressure on the yen. In China, fourth-quarter growth and activity indicators will serve as a decisive test of whether stimulus measures have successfully redirected growth toward domestic demand.

Key takeaways:

• The US Personal Consumption Expenditures (PCE) price index takes center stage.
• Davos 2026 meetings are highly sensitive for global markets.
• Markets are awaiting the Bank of Japan’s policy meeting.
• China tests its economic activity for 2025.

What to expect from Davos 2026 meetings on global financial markets:

1. The US economy: PCE takes the spotlight

Inflation data, represented by the Personal Consumption Expenditures (PCE) reading for November, will overshadow the revised third-quarter GDP reading, after CPI held steady at 2.7%. This reading is of high importance, as it is the preferred inflation gauge for US Federal Reserve policymakers.

The strength of the US consumer will also be tested with the release of personal income and spending data, which clearly reflect households’ ability to continue spending amid tighter financial conditions. These indicators are a critical measure of the resilience of economic growth and future market direction.

The 2026 Davos meetings

The annual World Economic Forum 2026 will be held in Davos, Switzerland, between 19 and 23 January under the title “The Spirit of Dialogue,” with Trump making an appearance and giving an important speech on Wednesday in front of a world-class audience.

The world will closely monitor key developments at the forum, including:

1. Any signals of a near US–Swiss trade agreement.
2. Statements from artificial intelligence leaders at Microsoft, Nvidia, and Google.
3. Discussions on key geopolitical issues (Venezuela, Ukraine, Greenland, and Iran).

The Davos meeting’s outcomes are highly sensitive compared to previous economic events and indicators in a way that will probably affect market performance on different levels. Thus, we advise close monitoring and flexible risk management.

2. The EU economy: Several key economic data releases

Markets anticipate the UK’s labor market data and retail sales and inflation indicators. This comes after a positive November GDP reading that nonetheless does not change a general state of slow growth and an inflation hovering around 3.2%. Therefore, any decrease in inflation rates will empower the Bank of England to cut interest rates in its early February meeting, especially as labor markets remain weak.

The EU’s and the UK’s Preliminary Purchasing Managers’ Index (PMI) data will be released as well this week, giving preliminary insight into economic growth, inflation, and January’s labor market performance.

3. Japan’s economy: The BoJ meet for the first time in 2026

The Bank of Japan (BoJ) will be meeting for the first time in 2026 this week as voices rise calling for quick intervention to raise interest rates and save a yen hovering around the intervention threshold of ¥160 per US dollar.

Despite analysts not expecting rates to be raised during the meeting, ears will be centered on forward guidance from policymakers.

The meeting will be held after the release of key economic data, including industrial production, with it being expected to go down sharply. Japan’s December trade balance will also be out, as well as inflation rates through the national core Consumer Price Index, which remains at around 3%.

4. China’s economy: The Chinese economy put to the test

China’s Q4 Gross Domestic Product (GDP) will be released this week with an expected annual growth rate of 4.5%, which will be the indicator’s weakest reading since 2023. However, the Chinese economy will end 2025 with a growth rate approximating 5%, as expected.

As for this year, China’s economy is expected to shrink to 4.6%, with more stable growth projected, particularly with ongoing stimulus measures that include interest rate cuts, a shift toward more accommodative monetary policy, and incentives for investment, industrial production, and domestic demand.

Industrial production, retail sales, and investment data will be critical in assessing the extent to which growth is shifting toward domestic demand and whether this balance can be sustained in the period ahead.

The economic calendar this week from 18th to 25th January: