Week Ahead – April 24th

US earnings season will kick into a higher gear next week with Microsoft, Alphabet, Facebook, Amazon, Coca-Cola, Visa, Boeing, Mastercard, and Exxon Mobil set to report. Also, in the US the spotlight will be taken by advance estimate for Q1 GDP growth rate, personal income and spending, PCE price index, durable goods orders, and new home sales. Elsewhere, the GDP figures will be released for France, Euro Area, Germany, Italy, Spain, South Korea, and Mexico. Finally, investors will closely follow inflation rates for France, Spain, Germany, and Australia and monetary policy decision in Japan.

Next week, US earnings season will kick into a higher gear as several big names are set to report including Microsoft, Alphabet, Facebook, Amazon, Coca-Cola, Visa, Boeing, Mastercard, and Exxon Mobil. It will be also a busy week in terms of macro data with the GDP growth and PCE price index taking central stage. The US economy is estimated to have grown an annualized 2.0% in the first quarter of 2023, slowing from a 2.6% percent expansion in the fourth quarter of 2022. The Fed’s preferred inflation gauge is expected to have cooled in March, yet, core PCE inflation likely rose 0.4% over the previous month. At the same time,the Commerce Department will also release March durable goods orders that are likely rebounded by 0.9% over the previous month. Additionally, investors will pay close attention to personal spending and income data, projected to show that higher interest rates continued to dent demand, the final reading for the University of Michigan’s consumer sentiment, and inflation expectations. Finally, building permits and new home sales will offer further clues into the real estate.

In Europe, preliminary estimates are set to show the Euro Area, Germany, France, Italy, and Spain grew between 0.2%-0.3% in the first quarter, helped by lower energy prices and recovery fund spending. Flash HCPI reports will probably reveal inflation in Germany and France eased further to a 13-month low and a 7-month low, respectively. Meanwhile, Germany’s GfK Consumer Climate Indicator is seen increasing for a seventh consecutive period to the highest since June, and the Ifo Business Climate indicator is seen rising to a 14-month peak. Other data to follow is the Eurozone’s business survey; Germany’s unemployment; Switzerland’s KOF Leading indicators, retail sales and foreign trade; Turkey’s business morale and interest rate decision. In the United Kingdom, important releases cover public sector net borrowing, Nationwide house prices, and CBI gauges for factory orders, business optimism, and distributive trades.

In Asia, all eyes will be on the Bank of Japan’s first monetary policy decision under Governor Kazuo Ueda and the accompanying Quarterly Outlook Report for hints on a potential policy pivot. Japan will also post its unemployment rate, retail sales, and industrial production for March. At the same time, GDP data from South Korea is anticipated to indicate economic activity remained pressured amid weak semiconductor demand. Traders also await April consumer and business confidence from the country. Elsewhere, Taiwan will release growth figures, and Singapore will share inflation numbers.

In Australia, the week will be headlined by the inflation print for the first quarter. The country’s inflation rate is expected to have dropped from the 23-year record from the last quarter due to base effects of the Russian war. Apart from that, the market will monitor March’s credit data and producer prices for the first three months of 2023. In New Zealand, investors’ focus will turn to the first quarter trade balance and consumer confidence figures.