While there have been a number of factors impacting the markets in the last few days, investors are now beginning to focus on earnings reports coming from some of the biggest companies in the US after the slight disappointments seen in the past couple of weeks. Today's focus will likely be Microsoft's report, which could shed some light on the performance of the tech giant that has recently been in the news for the substantial acquisition deal made with Activision Blizzard that shook markets last week. While there will also be other major earnings from companies such as Johnson & Johnson as well as General Electric, investors are still trying to adjust to the significant volatility seen in markets recently. As tensions rise in eastern Europe and as many await the key FOMC decision tomorrow, we could be seeing a continuation of said volatility along with widespread uncertainty.
UK public sector borrowing report
The public sector borrowing report showed a slight increase in December on a monthly basis after pulling back slightly in October. While this may not seem like a significant issue for the time being, government spending has been one of the key topics related to the post pandemic recovery since if unchecked, it would add significant pressure on future expenses and limit potential economic growth. As investors await upcoming central bank decisions and as inflation concerns continue to rise, today's report could shift the markets perspective slightly regarding the state of public finances in the UK as it once again begins to show signs of weakness.
