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.

Unemployment in the UK remains high at 8.4%, making an economic recovery difficult. With a drop in inflation reported last week, the likelihood of the Bank of England expanding its QE program in the upcoming meeting in February are on the rise.

Britain’s trade balance deficit fell to 7.6 billion pounds in October, which was significantly better than the  9.5 billion deficit  that was expected. This figure is bullish for the pound, which has been inching up against the dollar.

In Canada, Corporate Profits is due to stay -4.9% similar to the last quarter.

British inflation dropped to 5%, still far above the official target, but what’s really worrying the central bank is the high unemployment, which will eventually lead prices to fall. We’ll get to hear more from the BOE in the meeting minutes.

In the US, New Home Sales leading monthly report to value the new sold households on the last month, is about to rise from 295K on September up to 302K now.

Headline inflation pierced the 5% mark. In the current environment, this only means more trouble for Britain, as tightening monetary policy is off the cards, especially after the QE2 decision.

In the US, Unemployment Claims the number of Americans filing their initial unemployment claims increased more than predicted to 428,000 from 417,000 in the preceding week indicating uncertainty in the job market. A drop to 419,000 is predicted now.

Inflation remains high in the UK, but this isn’t a great concern at the moment. The pound was relived by a not-so-bad jobs report, although the situation remains worrying, and the door for more QE is still open.

In the US, New Home Sales, important monthly indicator to rate the new homes that were sold, rise to 313K is expected from 312K on July.