In the stock market week before Easter, investors are likely to continue to be driven in particular by developments in the ongoing trade dispute. In addition to important economic data from China and the United States, it is important to keep an eye on the reporting season, which continues to gather pace. The stock exchanges will be closed on the last trading day of the week due to the Good Friday holiday.
Trump backs down: no tariff increase for smartphones and computers
Over the weekend, Trump had granted an exemption for import tariffs on smartphones and computers, for example, and provided further relief. Imports from China were also affected, it was reported. In the previous week, the US President had already lifted the so-called reciprocal tariffs for 90 days against countries that had not taken any countermeasures, but further increased the punitive tariff on Chinese imports.
In view of the new signs of easing with regard to the trade conflict, investors may be able to breathe a sigh of relief at the start of the new week.
From the perspective of the economic calendar, there could initially be monetary policy stimuli on Monday with speeches by Fed representatives Thomas Barkin (Richmond Fed/ 6:00 pm) and Governor Christopher Waller (7:00 pm).
Focus on Chinese economic data - ECB decides on key interest rate level on Thursday
Important China data will be published in the night from Tuesday to Wednesday (04:00). In addition to retail sales, the focus will be on the development of industrial production and gross domestic product (GDP).
In the afternoon, attention is likely to focus on the development of US retail sales.
A speech by Fed Chairman Jerome Powell could also attract attention (19:30).
On Thursday, the view across the Atlantic should also be interesting when the European Central Bank (ECB) decides on the future key interest rate level (14:15). ECB President Christine Lagarde is expected to address the public from 14:45.
Reporting season in the USA remains in focus: Quarterly figures from Goldman Sachs and Co in focus
The reporting season, which is picking up speed, is also likely to be exciting. While Goldman Sachs' figures for the past financial quarter are expected on Monday, Bank of America, Citigroup and Morgan Stanley will be in the spotlight on Tuesday. On Thursday, the figures from American Express and Netflix, among others, are likely to attract attention.
Dow Jones Industrial Average Index
Source: TradingView
