US inflation will be in focus in the wake of last week’s Federal Reserve decision to rates by 50bps. CPI and PPI numbers are due, whilst the latest consumer inflation expectations report from the University of Michigan will also be parsed. Meanwhile earnings season on Wall Street continues with some of the more speculative names. 

US inflation 

Inflation remains one of the most important factors in markets today, so the big focus in the coming week is the latest US consumer price index. Headline CPI in March rose by 8.5% from a year before, the fastest annual gain since December 1981. Core inflation, excluding food and energy, rose 6.5%. This week’s print is expected to be similarly high, but will it show signs of cooling or heating? The Fed raised rates by 50bps last week and was relatively cautious as it played down speculation for larger increases over the coming months. If inflation continues to build, the Fed may need to up its pace and this could leave stocks in danger of further selling pressure. CPI is out on Wednesday, whilst producer price inflation is due on Thursday. The University of Michigan inflation expectations survey is on Friday alongside the UoM consumer sentiment report. 

European sentiment 

A couple of sentiment updates for the Euro area will be of interest. Monday has the Sentix Investor Confidence report, whilst Tuesday sees the release of the ZEW Economic Sentiment report. Then on Wednesday we get the lates EU economic forecasts for the bloc – the war in Ukraine and inflation are sure to be factors. 

Earnings  

Corporate earnings season on Wall Street continues with some of the more speculative names in the market. Peloton, Coinbase, Roblox and Beyond Meat are just a few of the large cap companies updating the market. On Wednesday, media giants Liberty Global and Walt Disney report earnings. 

Earnings Season 

Major economic data