Upcoming week highlights Eurozone inflation figures and financial results from Apple and Meta Platforms Inc.
It's gon' be a wild week in the financial world, with economic data like the eurozone's flash April inflation and the US non-farm payrolls dropping. And let's not forget about those tech giants, particularly Apple, who'll be releasing their quarterly results. The markets got a boost last week with signs of de-escalation in the US-China trade war, but we'll keep our eyes peeled for any sudden changes.
In Europe, keep an eye out for the eurozone's Consumer Price Index (CPI) for April, expected to be released this Friday. Prices took a dip in March, with annual inflation falling to 2.2% and core inflation cooling even more. Let's hope they start climbing again and reach the European Central Bank's (ECB) 2% target.
Meanwhile, in the US, the first-quarter GDP figures and April's non-farm payrolls will dominate the conversations. With tariffs in effect, even at a lower rate, the impact could get more pronounced. The economy added 228,000 jobs in March and created some optimization ahead of the tariffs, so we'll see if that trend continues.
As for Asia-Pacific, the Bank of Japan (BOJ) will announce its rate decision, and it's expected to maintain rates amid growing economic concerns due to tariffs. We'll also see China's manufacturing and services Purchasing Managers' Indices and Australia's first-quarter CPI.
Eurozone's economic growth might take a significant hit due to Trump's 2025 tariffs, with a possible 100+ basis point (1+%) reduction in GDP growth in the first year. Sectors like automotive exports and steel and aluminum could feel the burn. Analysts predict that the US economy could drop to 1.8% GDP growth and the eurozone to 0.8% in 2025 if tariffs persist.
- In light of the potential economic downturn due to trade tariffs, some investors might choose to weigh their options carefully, particularly in the finance sector, given the looming possibility of a recession.
- It's essential to maintain accessibility to up-to-date financial information amid such turbulent economic times, making platforms like WhatsApp vital in disseminating crucial data promptly.
- With the US-China trade war showing signs of de-escalation, there's a renewed interest in investing in global businesses. The added uncertainty, however, requires a careful analysis of each opportunity.
- As government entities like the European Central Bank strive to meet their 2% inflation target, it's crucial to assess the weigh-ins and outcomes of their monetary policies on various industries, such as automotive exports and steel and aluminum, during times of economic recession.
