Nationwide protests against government policies

What happened: Nationwide protests are escalating, with "massive" crowds gathering in St. Paul, Minnesota, on January 21, despite cold weather. Confirmed speakers include Minnesota's governor. Meanwhile, the Party for Socialism & Liberation (PSL) is planning a May 1 general strike to disrupt U.S. economic activity. In the UK, the British Horseracing Authority is considering more direct action protests against government affordability checks for punters.

Market impact: These protests and planned strikes could disrupt economic activity, potentially impacting sectors sensitive to consumer spending and labor productivity. In the U.S., industries like retail and hospitality may face headwinds, while in the UK, horseracing and related betting services could be affected. Valuations may reprice as investors reassess economic growth prospects.

What to watch next: On February 1, the U.S. releases its January jobs report, which could reflect any labor disruption from the planned general strike. In the UK, the government's response to horseracing protests and any potential changes to affordability checks will be crucial to watch. Additionally, earnings reports from consumer-facing companies in both countries, starting in late February, may provide insights into the impact of these developments on corporate performance.