A Week of Significance: Fed Meeting, Tech Giants’ Earnings, and Global Economic Indicators

This week is shaping up to be a significant one for business and finance, with several key events set to take place. On Tuesday and Wednesday, the U.S. Federal Reserve will hold a meeting, with Fed Chair Jerome Powell’s comments on potential policy easing in 2024 being closely watched. While rate action is unlikely, futures markets now predict some easing in 2024, down from earlier expectations.

In addition to the Fed meeting, two of the “Magnificent Seven” megacaps – Amazon and Apple – will be reporting their results this week. While Amazon’s shares have performed well this year, rising 18%, Apple’s shares have lost some steam, falling over 10% in 2024. Other tech giants like Tesla and Meta Platforms have also shown mixed performance.

China’s PMI index and the Caixin/S&P Global manufacturing PMI survey are also expected to be released this week. Positive data could provide relief to policymakers working to boost growth, while global investment houses have become more bullish on Chinese stocks. However, Beijing is facing challenges with its currency, as the yuan has been sliding against the dollar.

Furthermore, Euro zone inflation and economic growth data will be released on Tuesday, potentially leading 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.