1-Fed Chair Yellen’s Speech
Fed Chair Yellen’s will give speech at the University of Michigan today; markets will closely watch her comments seeking any fresh clues on the monetary policy and the timing of the next interest rate hike.
Yellen may face questions over the Fed’s plan to begin shrinking its $4.5 trillion portfolio of mortgage and treasury securities later this year, as the central bank hasn’t provided any details about its plan yet.
2-US Data on Inflation and Retail Sales
US inflation data are due out on Friday, Analysts expect core inflation to rise 0.2% and CPI to increase by 0.1%, while forecasts indicate that CPI to climb 2.3% (YoY), however the Fed targeting 2% of core inflation.
Meanwhile, March retail sales figures are to release on Friday, it’s projected to drop 0.1% compared to a month earlier as it rose 0.1%. Core sales data expected to increase 0.2% the same reading in February, strong retail sales figures indicates the health of the economy as consumer spending represents about 70% of the US economic growth.
Besides inflation and retail reports, markets will await other reports on Producer prices and initial jobless claims.
3-US Earnings Season Starts
The first-quarter earnings season starts this week, with the results from major banks JPMorgan Chase, Wells Fargo and Citigroup, earnings of 15.4% are expected to be gained by the financial sector, S&P earnings are projected to up 7.5% excluding the energy sector.
Regarding the broader market, earnings are expected to inch up 10.1% than a year earlier and the best since 2014, sales growth is projected to climb 7.5% the best performance since 2011, according to these expectations markets will see strong earnings season.
4-U.K. Consumer Price Index & Employment Data
Britain’s March CPI results will be published on Tuesday at 08:30 GMT, it’s expected that the inflation will continue to increase by 2.3%, on the following day U.K. jobs data and March’s jobless claims figures will be released, the unemployment rate is expected to hold steady at 4.7%, and jobless claims are expected to decrease by 3000.
5-China’s Trade Data
China March trade data will be published on Thursday at 03:00 GMT, the report is expected to show a surplus of $10 billion compared to a deficit of $9.15 billion seen in February, it’s projected that exports rose 3.2% unlike the decline of 1.3% a month earlier, also imports are expected to show increase of 18.0% after it rose 38.1% in February.
Also, other reports are to release on consumer and producer prices inflation, it’s expected that consumer prices and producer prices rose 1.0% & 7.6% respectively.