Major Week Ahead: Bank of Japan and Federal Reserve to Announce Rate Decisions, 5 of 7 Major US Tech Firms to Report Earnings, Latest Employment Data from US Labor Department

On April 27, all members of the G7 will hold central bank meetings this week, with 42% of companies in the S&P 500 by market capitalization set to report earnings, including five of the seven major tech giants. Even without considering potential unexpected news from the Iran conflict, this week is poised to be significant. The Bank of Japan will announce its rate decision on Tuesday, followed by a press conference by Governor Kazuo Ueda. This will be followed by the Federal Reserve and the Bank of Canada on Wednesday (early Thursday morning Beijing time). On Thursday, the European Central Bank and the Bank of England will announce their rate decisions. While all central banks are expected to maintain their current rates, the key question is how each central bank’s response mechanisms will be influenced by the ongoing conflicts and associated stagflation risks. Alphabet, Microsoft, Amazon, and Meta will report their Q1 earnings after the US market closes on Wednesday (early Thursday morning Beijing time), while Apple will announce its results on Thursday (5 AM Beijing time). Deutsche Bank economists expect any meaningful guidance changes from the Federal Reserve to be delayed until June, as this week marks the last meeting before Powell’s departure. Nevertheless, communication may lean slightly hawkish—either through nuanced wording like ‘additional policy adjustments’ or through Chairman Powell hinting at a more symmetrical assessment of the risks to the dual mandate. A clear acknowledgment that the risks to price stability and employment are now more balanced could likely be interpreted as a slightly less dovish stance. In addition to the meetings, the personal income and spending report on Thursday, especially the latest unemployment claims data and core PCE data, will be crucial. The important timeline for this Thursday in Beijing time is as follows: · 2:00 AM: Federal Reserve FOMC announces rate decision · 2:30 AM: Federal Reserve Chairman Powell speaks · 4:30 AM: Alphabet earnings call · 5:30 AM: Microsoft, Amazon, Meta earnings calls · 8:15 PM: European Central Bank announces rate decision · 8:30 PM: Latest US employment data, Q1 annualized GDP preliminary rate.