The week ahead – All Eyes on U.S. GDP & PCE Price Index.

Key Upcoming Events:

• US GDP Growth Rate QoQ 15:30 (GMT+3) Thursday 25^th April
• JP Interest Rate Decision 06:00 (GMT+3) Friday 26^th April
• US PCE Price Index 15:30 (GMT+3) Friday 26^th April

US Economic Data: The spotlight next week will be on U.S. GDP for Q1, the core PCE index, and preliminary S&P Global PMIs. Recent strong U.S. data have reduced expectations for Federal Reserve rate cuts, shifting the market’s anticipation from questioning the extent of rate reductions to wondering if there will be any cuts at all this year. These upcoming reports could significantly influence market sentiment and monetary policy outlooks, offering fresh insights into the health of the U.S. economy.

Bank of Japan’s Policy Meeting: The BoJ meets amid speculation about further rate hikes. Despite ending negative interest rates and signals of maintaining accommodative conditions, the BoJ has hinted at gradual future hikes. Investors will look for guidance on potential summer rate increases, especially with recent inflation trends.

European and UK Economic Indicators: Flash PMIs for the Eurozone and UK are due, with potential implications for the ECB and BoE’s monetary policies. Recent data suggest both economies might be stabilizing, but central banks are poised to adjust rates in response to inflation targets.

Tech Giants Earnings Reports: As earnings season progresses, results from major tech companies like Alphabet, Tesla, Meta, and Microsoft will be closely watched. These could impact market sentiments and influence stock market directions amidst other global economic tensions.

This week the markets will be closely following economic data & earnings reports such as:

Monday:

• CA PPI MoM MAR
• US Chicago Fed National Activity Index MAR
• EU Consumer Confidence Flash APR
• EU ECB President Lagarde Speech
• Earnings Reports:
  • Verizon Communications Inc.

Tuesday:

• EU HCOB PMI Flash APR
• GB S&P Global PMI Flash APR
• US S&P Global PMI Flash APR
• US New Home Sales MoM MAR
• Earnings Reports:
  • Visa Inc.
  • Tesla, Inc.
  • PepsiCo, Inc.

Wednesday:

• AU Inflation Rate QoQ Q1
• DE Ifo Business Climate APR
• CA Retail Sales MoM FEB
• US Durable Goods Orders MoM MAR
• Earnings Reports:
  • Meta Platforms, Inc.
  • International Business Machines Corporation

Thursday:

• DE GfK Consumer Confidence MAY
• US GDP Growth Rate QoQ Adv Q1
• US Pending Home Sales MoM MAR
• Earnings Reports:
  • Microsoft Corporation
  • Alphabet Inc.
  • Merck & Co., Inc.

Friday:

• JP BoJ Interest Rate Decision
• US Core PCE Price Index MoM MAR
• US Michigan Consumer Sentiment Final APR
• Earnings Reports:
  • Exxon Mobil Corporation
  • Chevron Corporation
  • AbbVie Inc.

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