The latest escalation in the Middle East between Iran and Israel is likely to keep stock markets busy in the new trading week. Following the publication of the US inflation data from the previous week, monetary policy uncertainties should also continue to be a topic of conversation on Wall Street. It is also important to keep an eye on the reporting season as it gathers pace.
Escalation in the Middle East: Geopolitical risks are likely to continue to accompany investors
An Iranian drone and missile attack on Israel caused a stir on Saturday night. An Israeli retaliation is likely to trigger renewed downside risks. It remains to be seen how long the legs of geopolitical exchanges will be. Fears of a further escalation of the situation could continue to keep a grip on the stock markets. The threat of an attack by Iran at the end of last week had already significantly dampened investors' risk appetite.
Focus on US and Chinese data - "Beige Book" provides insights into economic development
The economic data calendar promises manageable movement potential this week, although the US retail sales data should provide some initial impetus (14:30).
How China's gross domestic product fared in the first quarter of the year will be assessed on Tuesday (04:00). The health of the world's second-largest economy could also attract interest on the US stock markets.
At midweek, the focus is on the Fed's "Beige Book" (20:00), which presents a current economic report and thus information on the economic situation in the United States.
Second half of the week with few potential price drivers - major US banks could provide impetus
The economic data calendar is extremely thin in the second half of the week. However, new figures on the weekly unemployment trend in the US could be of interest on Thursday at 14:30.
Last month, the official labor market report (non-farm payrolls) was strangely strong. Investors continue to hope for signs of a slowdown and thus for new interest rate cut fantasies. Recently, several Fed representatives have repeatedly dampened hopes of interest rate cuts in the near future.
The US investment bank Goldman Sachs presents its figures today, Monday. Morgan Stanley, Bank of America and pharmaceutical and consumer goods manufacturer Johnson & Johnson will follow on Tuesday.
Last Friday, the US banking giants JPMorgan Chase and Wells Fargo had already disappointed. Meanwhile, Citigroup was able to surprise.
Streaming service Netflix will also present its figures on Thursday.
