Ahead in wall street :- The Federal Reserve officials will discuss the moderated employment report, easing concerns about elevated rates, and earnings season is nearing its end, with the Bank of England and Reserve Bank of Australia meeting.
Fed speech and data
- Fed Policymakers’ Speaking Engagements
- New York Fed President John Williams and Richmond Fed President Thomas Barkin to speak on Monday.
- Minneapolis Fed President Neel Kashkari to speak on the same day.
- Chicago Fed President Austan Goolsbee and Fed Governor Michelle Bowman to appear later in the week.
- Consumer confidence data on Friday to provide insights into inflation expectations and economic outlook.
- Weekly report on initial jobless claims due on Thursday.
Earnings
- First Quarter Earnings Season Overview
- Larger caps like Walt Disney, Wynn Resorts, and Akamai Technologies due to report.
- Small cap names include Bellring Brands, Light & Wonder, and Permian Resources.
- Small cap stocks have lacked broader market gains due to potential Fed rate hikes.
- Friday’s jobs report eased fears of elevated rates, improving outlook for small caps.
Bank of England Meeting: Potential Rate Cuts
- Investors await Bank of England’s rate statement on Thursday.
- Mixed economic data prompts market expectations for first rate cut to September.
- BOE to publish updated quarterly forecasts.
- Downgrades to medium-term inflation forecasts could signal policymakers’ comfort with market pricing rate cuts.
RBA Meeting Announced
- RBA to hold latest policy meeting on Tuesday.
- Inflation data and labor market strength expected.
- No expected change from RBA.
- Market closely watches Governor Michelle Bullock’s comments.
- Markets narrowed odds on RBA raising rates post-inflation.
- Unexpected March retail sales pared bets.
Oil Prices Post Sharpest Weekly Loss in Three Months
- Brent and WTI fell by over 7% and 6.8% respectively.
- Investors worried about higher borrowing costs affecting US economic growth.
- Geopolitical risk premiums due to Israel-Hamas war have diminished.
- Traders speculate lower oil prices could prompt US to replenish strategic reserves.
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Investors await Tuesday’s U.S. inflation data to gauge Fed interest rate cuts, with February’s consumer price index expected to rise 0.4% after a faster increase of 0.3% in January.
Fed Chair Jerome Powell indicated that a rate cut may be appropriate this year, but he and his team are not yet prepared. Market observers will also be examining February’s retail sales data, which is expected to rebound 0.8% after a similar decrease a month earlier.
The economic calendar also features updates on industrial production, consumer sentiment and weekly data on initial jobless claims.
Fed officials will be entering the traditional blackout period ahead of their upcoming meeting next week.
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