Business Outlook: Federal Reserve on course

In the upcoming week, there are several key events in the business and finance world that will be closely watched. Firstly, the U.S. Federal Reserve is scheduled to meet on Tuesday and Wednesday. While no rate action is expected, investors will be paying close attention to comments from Fed Chair Jerome Powell regarding the possibility of policy easing later in 2024. Fed futures markets have already adjusted their expectations, with a decrease from 150 basis points to 35 basis points anticipated for the year.

Additionally, two tech giants, Amazon and Apple, are set to report their quarterly results. Apple shares have struggled this year, falling by over 10%, while Amazon’s stock has seen an 18% increase. The performance of these companies will provide insight into the overall health of the tech sector.

China’s PMI index figures are also due to be released, with expectations for positive news that could boost confidence in the country’s economic growth. Despite challenges such as a weakening yuan, global investment houses remain optimistic about Chinese stocks, with the CSI 300 index gaining more than 10% since February.

In Europe, the Euro zone will release inflation and economic growth data on Tuesday. This data could influence market expectations for the European Central Bank to lower its deposit rate in June. However, economists predict only a slight increase in GDP for the Euro zone in the first quarter. Overall, these developments will shape the narrative of the business and finance world in the coming week.