Key Events Around the Globe: Jan 14

Japanese Manufacturers’ Mood Weakens to Six-Month Low in January: Reuters Poll

Japanese manufacturers’ confidence slipped to a six-month low in January, albeit still in positive territory, with companies in the oil and steel sector particularly disheartened by lacklustre demand in major economies, the Reuters Tankan poll showed. The monthly poll, which tracks the Bank of Japan’s closely watched tankan survey, showed the manufacturers’ index declined to plus 7 from plus 10 in December, down for a second straight month. Materials industries had some of the biggest drops in sentiment with the oil and ceramics sector plummeting 25 points to zero, the steel sector sliding 11 points to minus 44 and the chemicals industry losing five points to plus 6.

US Crude Stock Sees Unexpected Rise, Indicating Weaker Demand

The American Petroleum Institute (API) has reported a significant increase in the inventory levels of US crude oil, gasoline, and distillate stocks, pointing to a potential slump in demand. The actual number reported was a rise of 5.270 million barrels, a stark contrast to the forecasted decrease of 2.000 million barrels. This unexpected surge not only defied predictions but also significantly surpassed the previous decrease of 2.800 million barrels. The API’s weekly crude stock figures serve as a reliable indicator of US petroleum demand. An increase in crude inventories typically implies weaker demand, which can bear negatively on crude prices. Conversely, if the increase in crude is less than expected, it suggests greater demand and can be bullish for crude prices.

Federal Budget Deficit Narrows, Yet Falls Short of Expectations

The Federal Budget Balance, a key indicator of the nation’s financial health, was recently reported. The balance, which measures the difference in value between the federal government’s income and expenditure during the reported month, came in at -$145B, indicating a deficit. This figure, while still denoting a deficit, is a slight improvement compared to the previous month’s deficit of -$173B. The data shows that the federal government was successful in narrowing the budget gap by $28B, a positive development for the U.S. economy. However, the actual deficit of -$145B fell short of the forecasted -$140.7B. Economists had predicted a smaller deficit, indicating an expectation for stronger government income or reduced expenditure. The larger-than-anticipated deficit suggests that the government’s fiscal situation was not as strong as expected during the reported month

Source: HSL Prime Daily, 14 Jan 2026

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