Data confirmed yesterday that inflation in the Eurozone advanced to 7.4%, a tick lower than the 7.5% expected by analysts. Yet the German producer prices jumped more than 30% year-on-year in March, the fastest rise in 73 years. Although Christine Lagarde promised gradual tightening at the latest European Central Bank (ECB) meeting, the hawkish comments from the other members hint that the ECB may not wait too long before raising the interest rates to tame inflation.
Earnings is the only thing that could reverse the selloff. Next week, Meta, Apple, Alphabet, Amazon will go to the earnings confessional.
The hawkish shift in ECB expectations suggests that the upside risks are building for the euro. Jerome Powell, on the other hand, said yesterday that a 50bp hike is on the table for the May FOMC meeting, and hinted that the Fed may get even more aggressive in next meetings. US equities lost on hawkish Fed comments. Earnings is the only thing that could reverse the selloff. Next week, Meta, Apple, Alphabet, Amazon will go to the earnings confessional. Investors will also watch the US LNG company EQT, the Chinese EV maker Nio, Ford, FirstSolar and Warner Bros Discovery earnings last week.
Watch the full episode to find out more!
0:00 Intro 0:24 Scary European inflation boost ECB hawks 3:23 Powell says Fed could get more aggressive, as well 4:02 Strong earnings could reverse selloff 5:27 Meta in trouble? 6:28 Apple could surprise 7:27 EQT and... 8:04 FirstSolar boosted by Ukraine war? 8:44 How bad China lockdown hit Nio earnings? 8:59 How about the chip stocks? 9:14 CNN+ out of bizz
Ipek Ozkardeskaya has begun her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked at HSBC Private Bank in Geneva in relation to high and ultra-high net worth clients. In 2012, she started as FX Strategist at Swissquote Bank. She worked as a Senior Market Analyst in London Capital Group in London and in Shanghai. She returned to Swissquote Bank as Senior Analyst in 2020.
