The important economic news, that will drive the markets this week

Global financial markets will focus on this week's European Central Bank meeting for further details on when the central bank plans to end its massive economic stimulus program.

Staying on the central bank front, traders will pay close attention to a monetary policy decision from the Bank of Japan after a small tweak in its bond purchases earlier this month triggered talk that it would cut back on QE.

Mounting chatter that the world's leading central banks will start tightening monetary policy has sparked a global bond market selloff this month, with yields in the U.S., Europe and Asia all spiking higher.

Meanwhile, investors will keep an eye on a preliminary reading of fourth-quarter U.S. growth to gauge if the world's largest economy is strong enough to withstand multiple rate hikes in 2018.

In the UK, market players will focus on the first estimate of British fourth-quarter GDP for further hints on the health of the economy and the likelihood of the Bank of England raising interest rates this year.

Inflation data out of Canada will also garner some attention after the Bank of Canada raised interest rates for the third time in seven months last week.

Another headliner this week will be the World Economic Forum in Davos, Switzerland, taking place Tuesday-to-Friday, where U.S. President Donald Trump, German Chancellor Angela Merkel, French President Emmanuel Macron and British Prime Minister Theresa May are all expected to be in attendance.

Global trade will also be in the spotlight in the week ahead, as U.S., Canadian and Mexican negotiators convene in Montreal from Tuesday in talks to update the North American Free Trade Agreement.

1. BoJ Policy Announcement - Tuesday, 06:00
The Bank of Japan is also seen keeping policy on hold at the conclusion of its two-day rate review on Tuesday, including a pledge to keep short-term interest rates at minus 0.1%, while painting a slightly better picture of the economy. BoJ Governor Haruhiko Kuroda will hold a press conference afterward to discuss the decision.

There have been some indications recently that the central bank is setting the ground to begin discussions on winding back its quantitative easing program. A small reduction in the purchase of long-dated Japanese Government Bonds (JGB) by the BoJ earlier this month triggered speculation it will follow the Federal Reserve and ECB and start normalizing policy sooner than expected.

2. ECB Policy Meeting - Thursday, 15:30
The European Central Bank is widely expected to keep interest rates at their current record low levels when it holds its first policy meeting of the year at 1245GMT (7:45AM ET) on Thursday. President Mario Draghi will hold what will be a closely-watched press conference 45 minutes after the rate announcement.

The main focus will be whether the ECB thinks the euro zone recovery is now so strong that it can end its €2.5 trillion stimulus program in one fell swoop in September, as some in its ranks have been suggesting recently.

3. UK Preliminary Q4 GDP - Friday, 11:30
The Office for National Statistics is to produce preliminary data on U.K. economic growth for the fourth-quarter at 0930GMT (4:30AM ET) on Friday.

The report is forecast to reveal the economy grew 0.4% in the last three months of 2017, after expanding at the same rate in the previous three-month period. On an annualized rate, the British economy is expected to grow 1.4% in the Sept.-Dec. quarter, slowing from growth of 1.7% in the preceding quarter.

4. U.S. Advanced Q4 GDP - Friday, 15:30
The U.S. is to release preliminary figures on fourth-quarter economic growth at 8:30AM ET (1330GMT) Friday. The report is expected to show growth slowing to an annual rate of 3.0% from 3.2%. If GDP comes in as forecast, it would be the third consecutive quarter of 3%-growth, a solid and consistent pattern that hasn't been seen since 2005.

5. Canada Inflation Data - Friday, 15:30
Canada is to release December consumer price inflation data at 8:30AM ET (1330GMT) Friday. The report is expected to show that inflation decreased 0.3% last month. On a yearly base, CPI is projected to climb 1.9%.

Earnings calendar for next week:
Monday: Netflix, UBS, Halliburton
Tuesday: Johnson & Johnson, United, Travelers, Verizon
Wednesday: United Technologies, GE, Ford, Royal Caribbean
Thursday: Intel, Caterpillar, 3M, Starbucks, American Airlines
Friday: Honeywell, Colgate-Palmolive

Source: Bloomberg Pro Terminal

Jr Trader Alexander Kumanov

Read more:

• And for all the bounty hunters: Iran offers $80m for the head of Donald Trump
• US service member and 2 US Defense Dept contractors killed in Kenya attack
• Iranian Quds leader Qasem Soleimani has been killed – how are markets reacting
• A calm end of an otherwise loud 2019
• Old but Gold – Top 5 posts of Varchev Finance