Week Ahead as US earnings season Kick Off

US earnings season is expected to heat up next week with the announcement of results from a number of well-known companies, including Microsoft, Alphabet, Facebook, Amazon, Coca-Cola, Visa, Boeing, Mastercard, and Exxon Mobil. Macro data will also be active this week, with the PCE price index and GDP growth taking center stage.
The US economy is predicted to have risen at an annualized pace of 2.0% in Q1 2023, down from 2.6% in Q4 2022, according to analysts. Also anticipated to have increased by 0.4% from the prior month is core PCE inflation. Investors will also closely monitor consumer confidence, inflation predictions, and information on personal income and spending.

NewsOTG gathered that preliminary projections suggest that the Euro Area, Germany, France, Italy, and Spain all had growth in Q1 2023 of 0.2% to 0.3%, aided by decreased energy prices and spending from recovery funds. According to likely flash HCPI reports, inflation in Germany and France further decreased to lows of 13 months and 7 months, respectively. The Ifo Business Climate indicator is climbing to a 14-month high, and the GfK Consumer Climate Indicator in Germany is growing for a seventh straight period to the highest level since June.

Asia will be watching closely for any signs of a potential policy reversal in the Bank of Japan’s first monetary policy announcement under Governor Kazuo Ueda. It is predicted that South Korean GDP data will show that the economy was still under pressure due to sluggish semiconductor demand. Taiwan will present growth data, while Singapore will present inflation data. The inflation print for the first quarter will be the main event of the week in Australia. The country’s inflation rate is anticipated to have decreased from the 23-year record set in the previous quarter due to the base effects of the Russian war. Investors may expect a week filled with data releases and earnings announcements that will be both exciting and educational.
Traders will be watching for any signs that central banks will change their stance on monetary policy, and they will also be keenly observing inflation statistics and GDP growth rates. The markets’ reactions to the most recent economic figures will be intriguing to watch, as will any corporations that surprise investors with stronger-than-expected profit results.