Key facts
- The Fed, ECB and BOJ face no immediate pressure to hike rates after tightening last month.
- Markets expect Canada and New Zealand to hike rates to contain inflation.
- High oil prices are a concern for policymakers regarding broader price pressures.
- Alphabet, Amazon and Microsoft results will be critical for the AI rally.
- British finance minister John Healey aims to offer relief from energy prices without increasing borrowing.
- Israel's election is expected to result in lengthy coalition negotiations.
A busy week for financial markets includes policy decisions from the Federal Reserve, European Central Bank and Bank of Japan. Investors will also be watching earnings reports from tech giants Alphabet, Amazon and Microsoft to gauge the strength of the AI rally, amid concerns about spending on data centers. Other key events include an election in Brazil, a Chinese leadership gathering, and the British budget announcement. Central banks in Canada and New Zealand are expected to raise rates to combat inflation, while policymakers globally grapple with the impact of high oil prices on broader price pressures. In Israel, an election is expected to lead to complex coalition negotiations, though the market has seen a significant rally in local assets driven by the tech sector. China's leadership will convene to discuss governance amid a challenging external environment and a domestic demand slump.