Inflation And Tech Earnings Set To Rattle Many Markets Next Week

Benzinga2022-04-22

Next week, the largest market events will centre on inflation, with Australia and the European Area updating the market as to their respective rising consumer prices.

Wednesday, April 27, 2022

Australia Inflation Rate YoY Q1

Australia's quarterly inflation report is due this coming Wednesday. The country has been curiously immune to the worst inflationary pressure seen elsewhere, like the US (8.5%), the UK (7%), and across the ditch in New Zealand (6.9%).

As recorded in the previous quarter, Australia's inflation rate stands at 3.5%. However, it is not expected to remain so low in the next reading. It is likely to be the last inflationary figure before the Reserve Bank of Australia (RBA) moves to increase its interest rate. When the RBA does make this move, it will be the first of its kind in more than a decade.

Expectations are for a 50 basis point hike by the RBA in May, but has the market priced this into the Australian dollar yet?

The AUDUSD is trading a 0.745, after retracing some of the ground it made after releasing the minutes from the RBA's last meeting, where it became apparent that the bank is ready to take its foot off the gas.

AUDUSD D1

Friday, April 29, 2022

EA inflation Rate YoY April 

Inflation in the European Area is at an all-time high as of its last reading in March. YoY inflation in the EA surged to 7.5% from 5.9%, massively overshooting expectations of an already significant rise to 6.6%.

Aprils reading is expected to produce a fifth consecutive record inflation figure, in congruence with notes made by Christine Lagarde, head of the European Central Bank (ECB). Lagarde is anticipating energy prices to remain elevated in the medium term.

Even so, and perhaps imprudently, the ECB is not likely to start raising rates soon.

Perhaps it is wise to consider this another mark against the strength of the Euro, a currency that has been recently grappling with the risk-off environment instigated by Russia's invasion of Ukraine in February.

EURUSD D1 vs Inflation in EA

US tech giants sure to move markets

Additionally, we will be graced with earnings reports from everyone's favourite tech giants. Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFTL), Alphabet (NASDAQ:GOOG), Amazon (NASDAQ:AMZN), and Meta (NASDAQ:FB) will all supply the market with their latest market-moving notes over the course of the week. Alphabet and Microsoft are first to report, on April 26, followed by Meta on April 27 and Apple and Amazon on April 28.

Considering the considerable turmoil that their last earnings reports caused in the market, investors may be cautious of a repeat. Famously, Meta set the record for the largest loss in value ($230 billion) by a US company in one day after the release of its last earnings report.

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Comments

  • PERNGY BEAR
    2022-04-22
    PERNGY BEAR
    😱
  • winnerking
    2022-04-22
    winnerking
    Ok
  • robot1234
    2022-04-22
    robot1234
    Fed Chairman Jerome Powell on Thursday said the central bank is committed to raising rates “expeditiously” to bring down inflation. That could mean an interest rate hike of 50 basis points in May as prices rise at their fastest pace in more than 40 years. Traders also priced in an additional hike equivalent through year’s end that would take the fed funds rate, which sets the overnight borrowing level for banks but also is tied to many consumer debt instruments, to 2.75%.
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