The U.S. Bureau of Labor Statistics, BLS, announced that due to a partial federal government shutdown, the key January employment report will not be released as scheduled on Friday. Other labor market reports scheduled for this week will also be postponed. This shutdown occurred due to Congress failing to pass a budget. The January report, in addition to monthly data, was expected to include significant annual revisions to employment figures, which were anticipated to show that job growth in the year ending March 2025 was weaker than initial estimates. A new release date will be announced once government funding is secured.

U.S. President Donald Trump announced that in exchange for the Indian Prime Minister’s agreement to stop purchasing oil from Russia, punitive tariffs on Indian goods will be reduced. Under this agreement, which was reached after a phone call between the two leaders, the overall tariff rate on Indian goods was reduced from 25 percent to 18 percent, and an additional 25 percent surcharge will also be removed. Trump claimed that India has reciprocally reduced its tariffs and non-tariff barriers against the United States to zero and will purchase more than 500 billion dollars worth of American products. Trump is also urging countries to buy oil from Venezuela instead of Iran and Russia, thereby putting pressure on his negotiating rivals.

U.S. manufacturing activity expanded in January 2026 at its fastest pace since 2022. The Institute for Supply Management, ISM, manufacturing index rose to 52.6, indicating growth in new orders and higher production. This expansion followed nearly a year of contraction in the sector. Input prices increased and demand remained strong. The employment index also improved, although employment remains in contractionary territory. However, concerns persist regarding the impact of trade tariffs and high input costs on the sustainability of this trend.

China’s central bank lowered its one-year lending rate to banks to the lowest level on record in order to reduce financing costs and support economic growth. According to informed sources, the People’s Bank of China, PBOC, reduced the medium-term lending facility, MLF, rate to 1.5 percent in January, down from 1.55 percent in December. The central bank has not changed its policy rate since May 2025 and has opted for a gradual and low-profile approach rather than shock measures to support a fragile economy. This rate cut comes as China’s economy faces deflationary pressures and a prolonged downturn in the property sector.