Other news

On the agenda are the BoJ interest rate decision, China's credit rate, the trade balance of New Zealand and Switzerland, the US real estate market, retail sales of Canada and Mexico, as well as the German producer price index.

The sentiment in the oil market has been particularly gloomy this year. Only China was able to dispel the clouds hanging over oil prices.

China’s government announced its intention to focus on supporting the country's economy in the upcoming year. In this regard, business-friendly policies are likely to be created. However, fiscal stimulus may be reduced.

Luis de Guindos, vice-president of the European Central Bank (ECB), said that the growth of borrowing costs is going to be similar to the rate of interest rate hikes. This is due to the regulator's efforts to tame soaring prices in the Eurozone.

According to a Reuters poll, China is projected to leave its benchmark lending rates (LPR) unchanged for the third straight month on Tuesday. However, respondents raised their expectations for further central bank easing.

According to the Bank of England survey, 60 major financial companies expect the end of the upward cycle in March. At the same time, rates are projected to rise to 4.25%, up from 3.5% in December.

On Sunday, spot power price surged in Japan due to increased demand for heating. More and more energy is required as the northeast part of the country is hit by heavy snow.

In December, U.S. inflation decreased significantly due to a drop in demand. A decline in the number of new orders to the lowest level in 2.5 years caused a fall in business activity.

Economists at Commerzbank expect that gold prices may drop to $1,750 at the beginning of 2023. Although, the yellow metal is likely to reach $1,850 by the year-end.

The US Energy Department said that it is starting to buy oil for the Strategic Petroleum Reserve (SPR) after selling 180 million barrels earlier this year.