Markets: Week ahead - Rabobank

According to Rabobank analysts, a bounce in Chinese industrial profits in March following four months of contraction has offered some reassurance to investors. 

Key Quotes

“Ongoing concerns about trade talks and nervousness ahead of the FOMC, key data releases including China PMI and US payrolls data and a slate of key earnings reports is keeping investor sentiment cautious.  On the trade front, senior US officials will resume talks in China tomorrow.  The Bank of England will hold its latest policy meeting this week, though attention in UK markets is still dominated by politics.”

“The market will be looking for fresh clues from the Wednesday’s FOMC meeting. Fed’s hiking cycle continues to work its way through the economy and global headwinds remain. Therefore, we expect the Fed to remain on hold this year.”

“Cross party Brexit talks will continue today. Some press reports have suggested that the negotiations are on the brink of collapse.”

“The Turkish lira cemented its position as the worst performing EM currency so far in April after the central bank surprised the market by abandoning its firm commitment to raise interest rates further if necessary last week. The main focus this week will be on the High Election Board which is expected to give its verdict on the AKP’s objections to the outcome of the mayoral election in Istanbul won by the opposition CHP candidate Imamoglu.”