Top 5 things to watch in markets in the week ahead
Investing.com — U.S. inflation data for June will be in focus with the Federal Reserve all but certain to hike rates again later this month. Earnings season kicks off with results from big banks, while data out of China is expected to point to ongoing economic weakness. The Bank of Canada is expected to hike rates again and oil prices could be poised to break out to the upside.
Data on Wednesday is expected to show that the consumer price index rose at an annual rate of 3.1% in June, which would be the slowest increase since March 2021. Core CPI, which strips out volatile food and fuel prices, is expected to increase at an annual rate of 5%, moderating from 5.3% in May but still more than double the Fed’s 2% target.
The data comes after Friday’s June jobs report all but ensured the Fed will resume rate hikes later this month.
The U.S. economy added the fewest jobs in two-and-a-half years in June, but persistently strong wage growth indicated that labor market conditions remain tight.
Investors will also get the chance to hear from several Fed officials during the week with Minneapolis Fed president Neel Kashkari, Cleveland Fed President Loretta Mester, San Francisco Fed president Mary Daly and Fed Governor Christopher Waller all making appearances.
The Fed is also to publish its Beige Book on Wednesday.
Big banks will start reporting second-quarter results on Friday after breezing through the Fed’s stress tests late last month, paving the way for them to issue share buybacks and dividends.
The Fed's annual health check indicated that large lenders have enough capital to weather a severe economic downturn, but now it’s time for earnings.
JPMorgan Chase (NYSE:JPM), Citigroup (NYSE:C) and Wells Fargo (NYSE:WFC) are all
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