Investors face a week of policy decisions from the Federal Reserve, ECB and Bank of Japan, alongside results from Alphabet, Amazon and Microsoft that could test appetite for AI-related spending. Elections in Israel and Brazil, China’s leadership gathering and Britain’s budget are also on the agenda.
The Federal Reserve, Bank of Canada and Reserve Bank of New Zealand meet Wednesday, the ECB Thursday and the Bank of Japan Friday. Markets expect Canada and New Zealand to raise rates, while investors will assess comments on the outlook and the effects of high oil prices. Alphabet, Microsoft and Amazon will report results as investors weigh the risks of spending on data centres; about one-third of S&P 500 companies are set to report.
Finance Minister John Healey will announce his first budget on Wednesday, seeking to help households with higher energy prices without unsettling the bond market through increased borrowing. Analysts surveyed by Reuters expect fiscal headroom could narrow to around £15 billion ($20 billion) without spooking markets. Banks could face tax increases, while larger spending decisions may be delayed until next year.
Israel votes Tuesday, with polls suggesting neither Prime Minister Benjamin Netanyahu’s bloc nor the opposition is expected to win a majority. Brazil’s presidential election concludes Sunday, with markets hoping Flavio Bolsonaro can edge out Luiz Inacio Lula da Silva after the challenger’s strong first-round showing. China’s top leadership meets for a four-day plenum from Monday as domestic demand remains in a prolonged slump.
