We have officially mark the start of daylight saving time (DST), as North America have moved ahead an hour on Sunday 14th March. US and Canadian markets will trade one hour earlier than usual in Asia time.
The Federal Reserve’s highly anticipated monetary policy meeting will be the big deal for global financial markets in the week ahead. Last week, Fed Chairman Jerome Powell said that the economic reopening could boost inflation temporarily and that the US economy was going to start to see stronger employment in the next few months. Still, the Fed chief also said that the central bank was still a long way from its inflation and employment targets. Investors would be eager to hear if the central bank will take any measures to bring bond yields down, which saw the 10-year yield surge above 1.60% to the highest in a year on Friday.
Besides the Fed meeting, U.S. retail sales data will be in focus for further indications on the strength of the reopening rebound.
Meanwhile, in earnings, there are just a few big names set to report their latest financial results, with global economic bellwether FedEx ($FDX) and athletic apparel giant Nike ($NKE) likely to draw the most attention.
Here’s what you need to know to start your week.
S&P500 (US Market)
The benchmark index ($SPX) continued its recovery to end up +2.63% (+100.8 points) for the week, gaining traction to recapture its all time high at 3,965 points, a mere 20 points (0.5%) away.
At the current junction, $SPX have managed to trade back above its 20DMA & 50DDMA, along with a negation of its short term trendline resistance highlighted last week. Immediate resistance for $SPX is currently at 3,965, a continuation to break its all time high level.
Federal Reserve Policy Meeting
The Federal Reserve is expected to leave its benchmark interest rate unchanged at the conclusion of its two-day policy meeting at 2:00PM ET (18:00 GMT) on Wednesday, keeping it in a range between 0.0%-0.25%.
Perhaps of greater importance, Fed Chair Jerome Powell will hold what will be a closely watched press conference 30 minutes after the release of the Fed’s statement.
Investors will be looking for clear signs that Powell and fellow policymakers are concerned about the current spike in yields amid mounting inflation expectations.
U.S. Retail Sales
The Commerce Department will release data on retail sales for February on Tuesday at 8:30AM ET (12:30 GMT).
The consensus forecast is that the report will show retail sales fell 0.6% last month, following January’s surge of 5.3%.
Excluding the automobile sector, core retail sales are expected to drop 0.1%, after climbing 5.9% in the preceding month.
Rising retail sales over time correlate with stronger economic growth, while weaker sales signal a declining economy.
Consumer spending accounts for as much as 70% of U.S. economic growth.
FedEx, Nike Earnings
The fourth-quarter earnings season has all but wound down, however results are expected from a number of big names in the week ahead, with most of the focus falling on FedEx, and Nike, which both report Thursday after the close.
Other notable companies reporting this week include Dollar General ($DG), Crowdstrike ($CRWD), Coupa Software ($COUP), PagerDuty ($PD), and Sundial Growers ($SNDL).
