Retail sales data and Fed Chairman Powell’s speech are highlights of the economic calendar this week.
Economic data on Monday from China was not bright, with activity cooling sharply in April. Widening COVID-19 lockdowns took a heavy toll on consumption, industrial production and employment.
Fed Chair Jerome Powell will speak on Tuesday at a conference. He will probably reiterate that the U.S. central bank will hike interest rates by 50 basis points at the next two upcoming meetings.
For Tuesday‘s U.S. retail sales data, forecasts predict a 0.7% rise after a 0.5% monthly increase in March.
On Wednesday, investors will focus on reports of earnings results from a few big retailers, including Walmart Inc and Home Depot Inc.
Also, on Wednesday, the UK is to release inflation data, expected to show consumer prices leapt to 9.1% on a year-over-year basis in April, the largest jump in annual inflation since 1980 and the fastest inflation rate since 1982.
In the Eurozone, ECB President Christine Lagarde is to speak on Tuesday. The European Central Bank will publish its latest meeting minutes on Thursday.
Investors are dumping risk assets en masse as central banks get aggressive on inflation.
After the past week’s sharp plunge and rebound, stocks could see a reprieve from selling in the week ahead.
Investors will also be closely watching crypto assets after a volatile week last week.
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