Next week will have plenty to keep financial market traders and investors busy, including whether the Federal Reserve really has hit peak rates, another possible rate rise in Australia, a batch of European bank earnings and the continuing conflict in Gaza.A view shows the logo of the European Central Bank outside its headquarters in Frankfurt, Germany March 16.
No wonder markets see a 70% chance that the Fed’s brutal 20-month tightening cycle is over and that rate cuts could begin as soon as June. The yen shot straight back up when the markets sensed the Fed might finally have reached peak rates so next week could be an interesting one. With over 300 companies now reported, S&P 500 earnings are estimated to be up 5% year-on-year with about 80% of firms coming in with forecast-beating numbers.
Israeli forces have pushed into Gaza City in the north of the Gaza Strip, but are facing resistance from militant hit-and-run attacks from underground tunnels. Gaza health authorities say the Palestinian death toll now exceeds 9,000. All of the “Big Four” Australian banks forecast a hike, too, including Westpac where newly-installed chief economist Luci Ellis was until recently assistant governor at the RBA.