The most important 3 things to watch in the markets during the week are:
1- Inflation Numbers: Investors will look into the Producer Price Index (PPI) and Consumer Price Index (CPI) data in the United States this week for any signs that price pressures are easing after months of strong inflation.
2- Retail Earnings: Investors will gain insight into the strength of consumption in the United States this week with April retail sales data on Wednesday, in addition to earnings results from retail stores.
3- UK Data: Last week, the Bank of England came close to cutting interest rates, but the markets are divided on whether the first cut will come at the bank’s next meeting in June or if policymakers will hold out for longer. The first report from my job report will be closely monitored on Tuesday for signs that wage increases are fueling inflationary pressures, with economists expecting average weekly earnings, excluding bonuses, to rise by 5.9% annually in the first quarter.
