Upon returning from the long Easter weekend traders, apart from recent regular themes in the market, like monetary tightening and Russia-Ukraine war, will get some data to focus on. This includes flash PMIs from Europe as well as CPI data from Canada. Last but not least, traders will get some financial reports from well-known US tech companies. Be sure to watch US100, DE30 and USDCAD next week!
Wall Street earnings season for Q1 2022 began this week and investors focused mostly on banks and financial institutions. Next week traders will be offered a more diversified earnings stream. Some well-known US tech companies are scheduled to report, including Netflix and IBM on Tuesday as well as Tesla on Wednesday. Having said that, the tech-heavy Nasdaq-100 index (US100) may become more volatile in the coming days. US100 broke below the 14,000 pts area last week and financial reports from major tech companies may help turn the tide on the market.
A potential big event for European equities next week will be the release of flash PMI data for April on Friday. As always, French and German data released at 8:15 am and 8:30 am BST, respectively, will be the most closely watched. Data for April will serve as an update on how skyrocketing prices and war-related uncertainty are impacting moods within the European economy. Market expects a weaker reading than in March but PMIs from both France and Germany are still expected to remain above the 50 points threshold.
On the FX front, the Canadian dollar may see some action next week. Canadian CPI inflation data for March is set to be released on Wednesday (1:30 pm BST) while Canadian retail sales data for February will be released on Friday (1:30 pm BST). Bank of Canada delivered a 50 basis point rate hike this week. If price growth remains robust while other economic indicators continue to point to expansion, more rate hikes look to be a matter of time. In spite of a big rate hike from the Bank of Canada, CAD failed to strengthen significantly against other majors.