This week promises to be action-packed for investors, with a mix of economic data releases, central bank decisions, and earnings reports from major companies. Here’s a breakdown of what to watch for:

Overall Market Sentiment:

• Expect continued volatility as traders navigate geopolitical concerns and central bank policy changes.
• US earnings season heats up with reports from tech giants like Tesla and Microsoft.

Key Events by Day:

Monday:

• A quiet start, but traders are still cautious after last week’s market swings.
• China updates its loan rates, with investors hoping for stimulus measures.

Tuesday:

• Flash PMI data for major economies (Europe, US, etc.) will shed light on manufacturing and service sector health.
• US releases New Home Sales figures.

Wednesday:

• Australian inflation data (CPI) is a key focus point.
• US releases Durable Goods Orders, offering insights into business investment.

Thursday:

• ANZAC Day holidays impact trading in Australia and New Zealand.
• The US releases its first estimate of GDP growth for Q1 2024. An upside surprise could boost the US dollar.
• Weekly jobless claims and Pending Home Sales data are also released in the US.

Friday:

• The Bank of Japan’s rate decision could significantly impact the Japanese yen.
• The US releases the Core PCE Price Index, a key inflation measure watched by the Fed. A higher-than-expected reading could strengthen the dollar and pressure stocks and bonds.

Focus Areas:

• US GDP: Will it confirm a slowdown in economic growth, or might we see an upside surprise?
• PCE Price Index: Will inflation remain stubbornly high, potentially influencing Fed policy?
• Bank of Japan: Will they maintain their current rate or hint at future adjustments?
• Earnings Season: How will big tech companies fare in this volatile environment?

Stay Informed:

• Keep an eye on the US dollar, energy markets (oil and gold), and Treasury yields for signs of market sentiment shifts.