This week is a significant one in business and finance, with several key events to keep an eye on. The U.S. Federal Reserve will be holding its meeting on Tuesday and Wednesday, with Fed Chair Jerome Powell’s comments on potential policy easing later in 2024 being closely watched. While rate action is unlikely, Fed futures markets now predict some easing in 2024, down from earlier expectations.
Two of the “Magnificent Seven” megacaps, Amazon and Apple, are set to report their results this week. Although Amazon’s shares have been performing well this year, rising 18%, Apple’s shares have lost some of their shine, falling over 10% in 2024. Other tech giants like Tesla and Meta Platforms have also shown mixed performance.
Furthermore, China’s PMI index and the Caixin/S&P Global manufacturing PMI survey are expected to be released this week. Positive data could provide relief to policymakers working to boost growth; however, global investment houses have become more bullish on Chinese stocks despite Beijing facing challenges with its currency as the yuan has been sliding against the dollar.
Lastly, Euro zone inflation and economic growth data will be released on Tuesday, which may lead to speculation about the European Central Bank lowering its deposit rate in June. Economists expect euro zone GDP to have expanded by just 0.1% in the first quarter year-on-year; policymakers are not expected to make rapid moves after the potential rate cut.
Overall, this week offers a glimpse into the world of business and finance, highlighting key developments that could impact investors and economists alike.