Next Monday, investors will be closely watching releases of manufacturing activity indices in China, Germany, the UK and the US. The readings are expected to indicate that expansion moderates in the manufacturing sectors, which were a foundation for synchronized global economic recovery in late 2020.

The RBA will decide on the interest rate on Tuesday and is expected to leave policy parameters unchanged.

On Wednesday, the markets will be focused on inflation data in the Eurozone as well as the ADP estimate of the number of US jobs in January. The ADP is expected to indicate a barely positive growth - an increase of 40,000 jobs after a decline of 123,000 in December.

On Thursday, the Bank of England will decide on monetary policy. It is expected to acknowledge increasing risks for the UK economy after recent deterioration in economic data, namely December retail sales which were a huge miss. There is a risk that BoE could hint at the possibility of negative interest rates to counter slowdown.

The US NFP report will be the main event on Friday. Expected estimate of job growth is just 20 thousand. Chances are high that the number of jobs in the US economy contracted again in January and stock markets will come under pressure from growing pessimism in the eco data.

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