MNI Global Week Ahead April 12 - 16

Key Things to Watch:

• Tuesday, April 13 – US CPI
  • U.S. CPI is set to increase in March, with markets calling for a gain of 0.5% from 0.4% in February, according to Bloomberg. That'll mostly be driven by surging energy prices.
  • Meanwhile, base effects from the start of the pandemic will amplify core inflation, analysts say. Core CPI should rise 0.2% in March following a 0.1% gain in February, and will likely be boosted by increases in travel-related prices like airfare, hotels, and cars.

• Tuesday, April 13 - Friday, April 16 – U.S. Q2 Earnings
  • Q2 earnings season kicks off the largest U.S. bank names, with reports from Goldman Sachs, JPMorgan Morgan Stanley, Bank of America, Wells Fargo and Citigroup likely to take focus.
  • This keeps the financials sector in focus, with the bulk of the larger reports due on Thursday.

• Wednesday, April 14 – Reserve Bank of New Zealand Policy Decision
  • The Reserve Bank of New Zealand's Monetary Policy committee meets Wednesday with no change expected to the official cash rate, which has been held at the historic low of 0.25% since March last year.
  • As RBNZ Deputy Governor Geoff Bascand said recently, "economic activity in New Zealand has picked up over recent months," although noting it was still "patchy," suggesting that the central bank will take a cautious approach before moving away from its dovish approach.
  • The RBNZ is also mindful that adjusting policy before any of the leading central banks will put upward pressure on the NZD, which has appreciated by just over 15% in the last year to USD70 cents.
  • Reflecting the easy policy, policymakers have reintroduced loan to value ratios (LVRs) for mortgages in an attempt to de-risk the booming housing market, which has seen median prices spike 23% in only 12 months.

• Wednesday, April 14 - Speeches from Fed Chair Powell and ECB President Lagarde
• Fed Chair Jerome Powell and ECB's Christine Lagarde speak, at noon EST and 1400 GMT, respectively.
• Investors will look for clues on what "substantial progress" means for the U.S. and comments on the need for fiscal aid and a smoother vaccine rollout in Europe. Powell also has an interview with "60 Minutes" on Sunday.