As traders in many nations begin to return from their Easter vacations, here are five themes to watch on Monday, April 10.
Futures on U.S. equities remained largely unchanged ahead of a week in which crucial economic data will be released, including a fresh look at consumer and producer prices in the world’s largest economy.
Futures prices for U.S. equities meander close to the zero line as key inflation data looms.
At 5:20 ET (09:20 GMT), the Dow Futures contract was up 7 points, the S&P 500 Futures were down 0.01%, and the Nasdaq 100 Futures were down 21 points, or 0.17 percent.
The MSCI’s broadest index of regional equities excluding Japan inched up 0.43 percent, while Japan’s Nikkei gained 0.43 percent. Easter Monday was observed with markets shuttered in Hong Kong, Australia, and Europe.
Economists anticipate that consumer prices increased by 5.2% on an annualized basis and 0.3% month-over-month in March. The primary figure, which excludes volatile food and energy costs, is anticipated to have increased by 5.6% annually and 0.4% month-over-month. The data will be released on Wednesday.
The number will likely affect expectations for a possible monetary policy easing by the Federal Reserve. Traders will also have the opportunity to review the minutes from the March policy meeting of the U.S. central bank.
A closely monitored March report on the labor market revealed that the rate of hiring in the United States remained robust and unemployment declined. When the Labor Department data was issued on Friday, the New York Stock Exchange was closed.
The IMF meets to discuss inflation.
This week in Washington, the International Monetary Fund and the World Bank will conduct their annual spring summit. The high-powered gathering of central bankers and finance executives is anticipated to concentrate on measures to rein in elevated price growth while preserving the stability of the world’s banking system.
The outlook of the IMF is not exactly positive. Kristalina Georgieva, managing director of the fund, predicted in a speech last week that the global economy will likely experience several years of sluggish growth, citing a rise in geopolitical tensions and the risk of increased trade protectionism among significant nations.
The Treasury Secretary of the United States, Janet Yellen, and the Governor of the Bank of England, Andrew Bailey, will be featured lecturers at the upcoming event.
Banking crisis repercussions
This week’s earnings season is expected to be kicked off by large financial institutions later this week.
JPMorgan (NYSE:NYSE: JPM) and Citigroup (NYSE:NYSE: C) will report on Friday, with Goldman Sachs (NYSE:NYSE: GS), Morgan Stanley (NYSE:NYSE: MS), and Bank of America (NYSE:NYSE: BAC) reporting the following week.
The effects of last month’s collapse of Silicon Valley Bank are likely to garner the majority of attention. The failure caused tremors throughout the financial services sector, with investors most concerned about the possibility of widespread bank runs at smaller regional lenders.
Since then, a degree of tranquility has returned to the industry. The forthcoming results will likely provide a new perspective on the immensity of the recent turmoil’s repercussions.
Chinese IPOs surge under new listing guidelines
On Monday, the first group of Chinese stocks to hold their initial public offerings under a new, more lenient regime of listing rules surged, indicating that the regulations may help strengthen China’s position as a leading destination for international stock trading.
Shenzhen CECport Technologies Co., a distributor of electronic components, soared by as much as 239% to lead the gains among the 10 equities that debuted with this updated system.
Chinese companies can now début on the primary boards of the Shanghai and Shenzhen stock exchanges without first obtaining regulatory sanction. Additionally, the 23-times earnings-per-share cap on IPO pricing was eliminated. Additionally, caps on the first day of trading were eliminated.
The change to a so-called “registration-based listings system” is viewed as a mechanism to enable firms from more traditional sectors in China to benefit from a set of regulations that had long favored the country’s rapidly expanding technology firms. As a result, fundraising for these more conventional enterprises may become simpler.
Oil prices remain stable as demand uncertainty offsets OPEC+ production cuts.
As traders assessed the prognosis for supply in the aftermath of OPEC and its allies’ unexpected output cut, crude oil prices remained relatively stable to begin the week.
By 5:10 EST, U.S. crude futures increased 0.32 percent to $80.96 per barrel, while Brent crude futures increased 0.21 percent to $85.30 per barrel.
Following the announcement by OPEC+ earlier this month that it would begin a new round of production limits in May, crude prices increased by over 6% last week. Inventories of petroleum oil in the United States decreased more than anticipated.
However, the outlook for demand remains somewhat uncertain, with traders eager to determine what Wednesday’s U.S. inflation data will imply for global development as a whole.