Key developments regarding US economic data, Eurozone and earnings from the big players.

Eurozone

Before policymakers enter their customary pre-policy meeting blackout period on Thursday, a number of European Central Bank officials are scheduled to make appearances. February 2nd is the date of the next ECB policy meeting.

Two appearances are scheduled for ECB President Christine Lagarde, who last week denied market expectations that the ECB might delay the pace of rate rises given recent dips in inflation.

Data from the Eurozone might provide more clues about the state of the economy.

On Tuesday, the EU will disclose its flash PMI data, which is projected to show a little increase, and on Wednesday, the carefully watched German Ifo business environment index is likely to show further improvement.

The U.K.

UK mfg and services PMI preliminary release for January is due on Tuesday. The mfg index is expected to rise to 45.4 and services to edge back into expansion at 49.6. 

Tech earnings

The U.S. economy is showing indications of slowing down and may even enter a recession, so the recent rebound in technology stocks will be put to the test by the earnings reports that will be released in the upcoming week.

Microsoft, the second-largest U.S. firm by market value, releases its earnings report on Tuesday. Elon Musk's Tesla and Intel follow on Wednesday and Thursday, respectively.

The earnings season is off to a chilly start. According to statistics from Refinitiv, S&P 500 businesses are predicted to report overall fourth-quarter earnings that are 2.9% lower than they were in the prior year's quarter. Compared to a loss of 1.6% at the start of the year.

Alphabet, the most recent corporate firm to announce layoffs, announced Friday that it is eliminating around 12,000 employees or 6% of its staff. On Wednesday, Microsoft said that it will lose 10,000 positions, while Amazon began informing staff of its own 18,000 job losses.

U.S. economic data

On Thursday, the United States will release its preliminary estimate of the fourth quarter gross domestic product. According to economists, the economy grew by an annualised 2.6%, down from the third quarter's 3.2%.

Although this appears to be a positive sign, more recent economic data indicate that the economy will start to slow down at the end of 2022. Retail sales have dropped by at least 1% over the past two months, industrial production has fallen for the past three months, and residential construction has experienced six consecutive monthly declines.

As a result of the Federal Reserve's aggressive rate rises continuing to hurt demand, GDP is anticipated to contract in the upcoming quarters.

Additionally, on Thursday the personal consumption price index will be released, followed by information on initial jobless claims, durable goods orders, and new home sales on Friday.

(investing.com, CNBC.com)