Main factors:- The Federal Reserve’s minutes and Fed officials’ remarks are set to be published, while Nvidia reports earnings, PMI releases provide global economic health insights, the UK releases inflation data, and the Reserve Bank of New Zealand meets.
Fed Minutes and Speakers
- Fed Chair Jerome Powell’s April 30-May 1 meeting minutes due to publish.
- Report shows U.S. consumer prices increased less than expected in April, indicating inflation resumed in Q2.
- Other Fed officials to speak include Atlanta Fed President Raphael Bostic, Governors Michael Barr, Christopher Waller, Philip Jefferson, Cleveland Fed President Loretta Mester, New York Fed President John Williams, and Richmond Fed President Thomas Barkin.
- Economic calendar includes reports on home sales, durable goods orders, and consumer sentiment.
Nvidia Earnings: A Potential Signal for US Stock Markets
- Expected to report a significant increase in revenue and profit for Q1.
- Revenue is projected to reach $24.8 billion, up from $7.2 billion a year ago.
- Earnings per share are expected to rise to $5.57 from $1.09.
- The company’s stock price has risen over 90% this year, making it the third-largest U.S. company by market value.
May PMI Data Releases
- The U.S., China, the euro zone, and the U.K. are set to release PMI data, indicating a positive global economic outlook.
- Slow recovery in the euro area, resumption of U.S. inflation, and faster growth in China suggest a balanced global PMI.
- U.S. tariff increases on Chinese imports suggest a fragile global trade and growth outlook.
- Germany’s manufacturers are already experiencing trade and geopolitical shifts, potentially affecting their recovery and U.S. inflation.
UK Inflation Data Release
- April CPI data to be published on Wednesday.
- Economists predict significant slowdown in annual inflation rate to near 2% target by Bank of England.
- Further inflation report due before BoE meeting on June 20.
- BoE Governor Andrew Baily to deliver remarks on Tuesday.
- April retail sales data also scheduled for release.
RBNZ Decision
- Expected to maintain rates for seventh consecutive meeting.
- First major central bank to ease at start of pandemic and hike post-pandemic.
- Market bets for rate cut in October.
- RBNZ projects no rate cuts until next year.
- European Central Bank, BoE, Fed, Switzerland, and Sweden easing.
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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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