The Week Ahead

ALL EYES ON: Interest Rate Decisions.

In the week ahead, all eyes will be on the Federal Reserve’s meeting for clues about potential rate cuts, economic resilience, and inflation trends. Jerome Powell has indicated a need for more evidence of sustainable inflation reduction before any cuts, pointing to a cautious approach. While an immediate rate change isn’t expected, the “dot plot” will be scrutinized for insights into the potential path for interest rates during 2024.

Similarly, the Bank of England is expected to wait for clearer wage growth evidence before adjusting rates, with market expectations suggesting rate cuts beginning in August. Key data, including UK inflation figures and Euro Area PMIs, will also be in focus, possibly influencing market dynamics.

Additionally, the Bank of Japan’s meeting is highly anticipated, as it could mark the end of eight years of negative interest rates, reflecting a major policy shift. This comes as BOJ officials consider moving away from negative rates after significant wage hikes in recent labor negotiations. These developments will be crucial in shaping market sentiment and future monetary policy.

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

Monday:

• CN Industrial Production
• CN Retail Sales

Tuesday:

• JP BoJ Interest Rate Decision
• AU RBA Interest Rate Decision
• EU ZEW Economic Sentiment Index
• CA Inflation Rate

Wednesday:

• CN Loan Prime Rate
• GB Inflation Rate
• US Fed Interest Rate Decision
• US FOMC Economic Projections
• Earnings Reports:
  • PDD Holdings Inc.
  • Micron Technology, Inc.
  • General Mills, Inc.

Thursday:

• AU Unemployment Rate
• EU HCOB Composite PMI Flash           
• GB BoE Interest Rate Decision
• Earnings Reports:
  • Accenture plc
  • NIKE, Inc.
  • FedEx Corporation
  • Lululemon Athletica Inc.

Friday:

• JP Inflation Rate
• GB Retail Sales
• CA Retail Sales

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