Week Ahead Market Update | April 2022 Week 14. The United States will have a busy week as earnings season begins and various data reports give critical updates on the American economic recovery and inflationary pressures. Traders will also closely monitor statements by numerous Fed officials for more information on the central bank’s intentions for the next FOMC meeting. JPMorgan Chase and BlackRock are scheduled to announce results on Wednesday, followed by Citigroup, Wells Fargo, Morgan Stanley, and Goldman Sachs on Thursday. Meanwhile, Tuesday’s CPI figures are projected to show inflation at 8.5 percent, the highest level since December 1981, as high oil costs, supply bottlenecks, and solid demand continue to weigh. Additionally, important releases include producer prices, retail sales, industrial production, a preliminary reading of Michigan consumer sentiment, the NFIB business optimism index, the monthly budget statement, export and import prices, business inventories, and the New York Empire State Manufacturing Index. Friday, April 19, markets will be closed in commemoration of Good Friday.
Elsewhere in America, the Bank of Canada is projected to hike interest rates for the second consecutive meeting, but this time by a half-percentage point. Additionally, Mexico’s industrial output, Brazil’s retail sales and business confidence, and Argentina’s inflation rate will be closely monitored.
In Europe, the European Central Bank will release its monthly monetary policy statement, but no adjustments are anticipated as authorities await further developments in the Ukraine conflict, despite the present record high level of inflation. Nonetheless, investors will seek clarification on the timing and pace of the rate rise cycle after the ECB’s March meeting minutes, which were more hawkish than expected. Markets were taken aback when policymakers signaled their intention to halt the asset purchase program in Q3, and a sizable proportion demanded an immediate normalization of policy.
Turkey will also make interest rate decisions. Simultaneously, fresh inflation statistics will be provided for Germany, France, Italy, and Spain, among other nations. Additional indicators to monitor include the ZEW economic sentiment index and wholesale prices in Germany; the balance of trade in France; industrial output in Italy; and the unemployment rate and industrial activity in Turkey. European markets will also react to Sunday’s first round of French presidential elections, where incumbent President Macron is expected to take a slim lead against right-wing rival Marie Le Pen.
The UK’s economic calendar is jam-packed with critical reports on monthly GDP numbers, industrial output, and trade balance on Monday, followed by the jobs report on Tuesday and the March consumer price index data on Wednesday. Prices paid by UK consumers likely increased by 6.7 percent in March, the highest level since March 1992.
Australia will have a busy week ahead of it, with the publication of business and consumer confidence surveys, as well as labor market data, with the unemployment rate forecast to fall to a record low of 3.9 percent. In New Zealand, the Reserve Bank of New Zealand (RBNZ) is expected to hike interest rates to their pre-pandemic level of 1.25 percent. Additionally, South Korea’s central bank meets on April 14th, one day following the release of the country’s labor market statistics.
China will also be in the limelight, as the country’s inflation rate, credit growth, and foreign trade numbers for March are anticipated, with the latter showing steady rise in exports and a moderated pace of imports. That would be all for Week Ahead Market Update | April 2022 Week 14.