Last week mixed results were released amid an unexpected drop in Japan’s core machinery orders, with a 7.1% drop in December indicating the stagnating effect of the strong yen and the global slowdown. However consumer sentiment unexpectedly increased to 40 from 38.9 while expected to reach 38.6. Will Japan be able to hold off a deeper decline?

World Economic Forum (WEF) Annual Meetings – Day 1, this time is held in Davos for Bankers, Political, trade & finance Ministers and Commercial leaders from around 90 countries. Can influent market volatility.

Last week Japan’s core machinery orders jumped 14.8% from October. This climb was much higher than predicted, suggesting companies spent more capital yielding to the market demand following last year’s earthquake. Meantime, Tertiary Industry Activity went down more than predicted dropping 0.8% in November after 0.7% gain in the prior month. Let’s find out what’s in store for us this week.

In the US, Unemployment Claim, weekly report to measure who filed for the first time for unemployment cover, is due to rise by 10K from 366K up to 376K

Last week Japan’s large manufacturer’s sentiment dived to-4 in the third quarter from2 inthe second quarter amid worsening conditions in foreign markets and the yen appreciation and the floods in Thailand resulting in lower exports. The reading was below the -2 drop predicted. However the service sector dealing with domestic consumers unaffected by foreign markets, were quite optimistic with a reading of 4 after reaching1 in the second quarter. The figure was well above the1 pt. predicted. However unless foreign market conditions improve, Japanese economy could face a recession.

In the US, Unemployment Claims, weekly report to value the persons that filed for joblessness insurance, rise is predicted from 390K up to 396K.

Last week  Leading indicators dropped to 91.6 from 93.8 in July, while Current account increased export surplus, reaching 1.19T from 0.75T in July, and Business confidence improved for the first time in three months, reaching 45.9 from September’s 45.3 indicating recovery, but still below the 50 point line. Will this recovery continue?

In the US, Investor’s Business Daily (IBD) Techno Metrica Institute of Policy and Politics (TIPP), Economic Optimism, Survey  (900 consumers) to rate the financial conditions economic outlook for the 6-month, a rise from 39.9 points on September to 43.2 points now is forecasted.

Last week, the Tankan Manufacturing Index gained 2 points as predicted while the non- manufacturing index climbed by a mere 1 point unlike the 3 points predicted and Overnight Call Rate remained the lowest as expected. Nevertheless a positive growth  trend exists.

In theUS, Trade Balance, The gap between imports and exports has widened in June reaching -53.1B from -50.8B in the previous month. The gap is expected to narrow to -50.3B this time.