The strong US jobs report last Friday sent shockwaves through the system, leading investors to reconsider their expectations for the Federal Reserve’s interest rate decisions. This week’s all eyes are on inflation data (CPI) and the outcome of the Fed meeting. These will determine if the desired “soft landing” for the economy is possible and if the stock market rally can continue. Keep an eye out for other important economic releases and the Bank of Japan meeting, which could also cause some market swings.


Key Events:

  • US Inflation: Key Consumer Price Index (CPI) data on Wednesday will reveal inflation trends.
  • Fed Meeting: The Federal Reserve concludes its meeting on Wednesday, potentially impacting interest rates and stock prices.
  • Global Economic Health: Data releases from China, UK, and Australia paint a picture of global economic growth.

Day to Day Breakdown:

  • Monday:
    • A slow start with Australian and Chinese markets closed for a long weekend. Enjoy the calm before the storm!
  • Tuesday:
    • Another relatively quiet day, with focus shifting to UK employment data once European markets open. In the US, bond traders will be watching the 10-year bond auction.
  • Wednesday:
    • It gets busy with economic updates throughout the day. China releases inflation data (CPI and PPI), while the UK unveils their monthly GDP figures. But the real fireworks might happen when the US releases key inflation data (CPI) and concludes its highly anticipated Fed meeting.
  • Thursday:
    • Australia kicks things off with their employment report. Europe is quiet, but the US has more inflation data (PPI) and weekly jobless claims numbers to consider. Later, Treasury Secretary Janet Yellen will also be making a statement.
  • Friday:
    • The Bank of Japan takes center stage with their interest rate decision and accompanying updates. Europe has a light day, but the US gets data from the University of Michigan and a speech by ECB President Christine Lagarde.


Categories: Market News

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