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From Russian President Putin’s visit to China, to a meeting of NATO military chiefs, the U.S. consumer price index, dozens of speaking events for central bankers, and key earnings reports, I’m Jeff Kleintop with what you need to know for the week ahead.
We will hear from many central bank speakers throughout the week. On Tuesday, Fed Chair Powell and ECB Governing Council member Knot speak at a special event in Europe as central bank policies are set to diverge next month. In fact, the futures market has priced in greater than 95% odds of a 25-basis point June rate cut by the European Central Bank and less than a 10% chance of a cut by the Fed.
On Wednesday, we get the U.S. consumer price index for April,
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providing key data for Fed monetary policy as inflation has accelerated since the start of the year.
On Thursday, NATO military leaders meet in Brussels.
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Just as Russia’s President Putin visits China to seek to deepen economic and military cooperation, as well as sign new gas and oil contracts necessary to Russia’s economy.
China’s recent economic data has come in better than expected,
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boosting Chinese stocks, with the MSCI China Index up 25% from the January low—catching up and matching the performance of the S&P 500 now on a year-to-date basis. However, on Friday, China’s April data is likely to show a continued imbalance between strength in manufacturing and weakness in consumer spending.
Cisco Systems, Alibaba, and Baidu
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are among the tech names with quarterly earnings reports this week that will also help investors gauge the health of consumer spending and corporate budgets. In a week that also includes the release of the April reading for the U.S. consumer price index, we also get retail sales in the U.S. And we're going to get guidance provided by retail giants like Walmart and Home Depot will provide some insight into consumer sentiment amid signs of rising joblessness.
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Thanks for watching.
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