©Reuters
By Scott Kanowsky
Investing.com — As traders in many countries begin to return from their Easter holidays, here are five themes to watch for in financial markets on Monday, April 10th.
1. US futures are hovering near the zero line as key inflation dates emerge
US stock futures were broadly flat ahead of a week of key economic data releases, including a fresh look at consumer and producer prices in the world’s largest economy.
As of 05:20 ET (09:20 GMT), the contract was up just 7 points, trading down 0.01% and down 21 points, or 0.17%.
Asian equities edged higher, with the MSCI’s broadest index of regional equities ex-Japan rising 0.43% and gaining 0.42%. Markets in Hong Kong, Australia and Europe remained closed on Easter Monday.
Attention will once again turn to inflation, with economists predicting consumer prices to rise through March. The core number, which strips volatile food and energy costs, is projected to have risen around and. The data will be released on Wednesday.
The number is likely to affect expectations for possible easing from the Federal Reserve’s recent aggressive monetary policy campaign. Traders also have an opportunity to review the March US Federal Reserve Board meeting minutes.
Also feeding into sentiment was a closely watched jobs report in March, which showed the US hiring pace remained strong, slowing slightly. The New York Stock Exchange was closed on Friday as the Labor Department’s data was released.
2. IMF meets head inflation
The International Monetary Fund and World Bank will hold their annual spring meetings in Washington this week. The high-level gathering of central bankers and finance chiefs is expected to focus on measures to curb elevated price growth while preserving stability in a shattered global banking system.
The prospects for the IMF are not exactly rosy. In an opening speech last week, the fund’s chief executive, Kristalina Georgieva, indicated that the global economy is likely to grow slowly for several years, citing a rise in geopolitical tensions and the risk of greater trade protectionism among major countries.
Notable among the list of speakers at the event over the coming days are US Treasury Secretary Janet Yellen and the Governor of the Bank of England.
3. Consequences of the banking turmoil
The big banks are expected to get the ball rolling for the second quarter earnings season later this week.
JPMorgan (NYSE:NYSE:) and Citigroup (NYSE:NYSE:) are set to report on Friday, followed by Goldman Sachs (NYSE:NYSE:), MorganStanley (NYSE:NYSE:) and Bank of America (NYSE:NYSE:) the week after.
Much of the spotlight will likely be on the fallout from last month’s collapse of the Silicon Valley bank. The failure sent shudders across the financial services industry, as investors were particularly concerned about the possibility of a large-scale run on smaller regional lenders.
In the meantime, calm has returned to the industry. But the forthcoming results are likely to provide new insight into the magnitude of the fallout from the recent turmoil.
4. Chinese IPOs surge under new listing rules
The first batch of Chinese stocks to go public under a new, looser regime of listing rules surged Monday, a sign the rules could help bolster China’s position as a key destination for global stock trading.
Leading the gains among the 10 stocks debuting under this updated system was electronics distributor Shenzhen CECport Technologies Co., which rose as much as 239%.
Chinese companies can now make their debut on the head offices of the Shanghai and Shenzhen stock exchanges without first obtaining regulatory approval. Limits on IPO prices of 23 times earnings per share have also been lifted. Caps on profits on the first trading day have also been removed.
The shift to what has been dubbed a “registration-based listing system” was seen as a way to allow companies from more traditional sectors in China to benefit from a range of regulations that had long benefited the country’s fast-growing tech companies. This could potentially make fundraising for these more traditional businesses easier.
5. Oil stabilizes as demand uncertainty offsets OPEC+ production cut
Crude oil prices were broadly stable earlier in the week as traders assessed the supply outlook after a surprise production cut by OPEC and its allies.
By 05:10 EST, futures were up 0.32% to $80.96 a barrel, while rising 0.21% to $85.30 a barrel.
Crude oil rose over 6% last week after OPEC+ announced earlier this month that it would start a new round of production cuts in May. , meanwhile more than expected fell by.
But the outlook for demand remains a little uncertain as traders keen to see what Wednesday’s US inflation data will mean for broader global growth.
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