Investing.com - The S&P/ASX 200 opened modestly on Monday, after the benchmark recorded a 1.3% decline in its first week of the new year, following a 7.8% rally last month on hopes of central banks initiating interest rate cuts. The main index is currently trading just 2%, or 144 points, shy of its historic peak of 7632.8 set in 2021.
Ahead in the week, investors will closely monitor local CPI data, ahead of a more detailed and significant quarterly data set on January 31. Inflation in December is predicted to have fallen to its lowest since January 2022, which will help determine whether the next RBA cash rate adjustment will be an increase or a cut.
This week will also see a focus on the US December CPI data. The quarterly reporting season for the October-December results is set to commence in the US, with analysts predicting a year-on-year increase of 3% in S&P 500 Q4 profits.
On the bond markets, 10-year rates were at 4.173%.
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