This week major US banks start reporting their numbers for the first quarter: JPMorgan and Citigroup report on Friday, and next week Goldman Sachs, Morgan Stanley & Bank of America. This should give us an update on the health of the banking sector.
2) Interest rates / Inflation rates
CPI data on Wednesday, which will be closely watched by investors and traders, for a sign that the inflation has eased enough to make further rate hikes by the Fed unlikely. The job market data last Friday showed labour markets are still tight, which made another rate hike in May very likely if the numbers come in to high.
3) FED March meeting minutes
Wednesday the March Meeting minutes get published, and it will be interesting to see the Feds assessment of the current situation. There is a lot of hope of rate cuts at the end of the year, but the FED has already stated that they will keep increasing and keep the rate high as long as necessary.
4) Earnigs reports
Companies will start reporting on their earnings for Q1/2023 this week, so keep an eye on those reports, as they show us how the CEOs are able to cope with the current and the upcoming conditions.
5) Geopolitical Situation
Again a week of strange developments internationally: the french President Macron questioned Europe’s allegiance to the US during a visit to China and in interviews afterwards. China started a three day military exercise close to Taiwan, to train it’s troops in taking out important targets and blocking off the island. US and Filipino drills will start this week, but should not be viewed as a response to latest developments in Taiwan, according to US military officials.
