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5 Things to Watch on the Economic Calendar This Week

Published 2016-04-10, 04:53 a/m
© Reuters.  5 Things to Watch on the Economic Calendar In The Week Ahead
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Investing.com - In the week ahead, market players will be turning their attention to key economic data out of China, with Friday’s first quarter GDP report in the spotlight.

There are also more than a half-dozen Fed speakers on tap for the coming week, as investors search for fresh clues on the timing of the next U.S. rate hike.

In addition, a pair of speeches by Bank of Japan Governor Haruhiko Kuroda will be in focus as market participants assess the likelihood of an intervention to counter recent strength in the yen.

Meanwhile, traders will be awaiting a number of central bank decisions this week, including rate reviews in England and Canada.

This week also marks the start of the first quarter earnings season in the U.S.

Ahead of the coming week, Investing.com has compiled a list of the five biggest events on the economic calendar that are most likely to affect the markets.

1. China first quarter GDP

China is scheduled to release data on first quarter gross domestic product at 2:00GMT on Friday, or 10:00PM ET, Thursday. The report is expected to show the world's second largest economy grew 6.7% in the first three months of this year, slowing from growth of 6.8% in the preceding quarter.

The Asian nation will also publish data on March industrial production, fixed asset investment and retail sales along with the GDP report.

Additionally, China is to publish reports on March consumer and producer price inflation on Monday, while trade figures are due on Wednesday.

2. Fed speakers take the stage

Market players will be paying attention to a handful of FOMC member speeches during the week to further judge the balance of opinion among policymakers on the prospect of further rate hikes.

On Monday, New York Fed President William Dudley and Dallas Fed President Rob Kaplan are scheduled to speak throughout the day.

On Tuesday, Philadelphia Fed President Patrick Harker, San Francisco Fed President John Williams and Richmond Fed President Jeffrey Lacker are on tap.

Atlanta Fed President Dennis Lockhart and Fed Governor Jerome Powell are due to appear at Senate Banking subcommittee on Thursday.

Finally, Chicago Fed President Charles Evans is due to speak on Friday.

3. BoJ Governor Kuroda remarks in focus

Currency traders will be closely watching Bank of Japan Governor Haruhiko Kuroda when he speaks Tuesday and again in New York on Thursday for hints regarding the likelihood of a currency-market intervention in response to one-sided moves in the yen.

Japanese Finance Minister Taro Aso kept up the warning against a rapid rise in the yen, saying on Friday the government would take steps as needed, while declining to comment on any intervention in the market.

4. Bank of England & Bank of Canada publish rate decisions

The Bank of England will release its rate decision and minutes of its Monetary Policy Committee meeting at 11:00GMT, or 7:00AM ET, on Thursday. Last month, the Monetary Policy Committee voted 9-0 to keep rates on hold at a record low 0.5%.

Expectations for a rate hike by the BOE have been recently pushed back to early-2017 due uncertainty over a June referendum on whether or not Britain should stay in the European Union.

Meanwhile, the Bank of Canada's latest interest rate decision is due at 14:00GMT, or 10:00AM ET, on Wednesday, with most experts expecting the central bank to stand pat on rates.

Some market analysts expect BOC Governor Stephen Poloz to sound more upbeat about the economy and signal a greater willingness to move away from its easing cycle.

5. U.S. first quarter earnings season kicks off

U.S. first quarter earnings begin in earnest this week, with earnings per share forecast to decline 7.9% year on year, the third quarterly profit fall in a row. The energy sector, expected to have its first quarterly loss in at least 10 years, will be the biggest drag.

Alcoa (NYSE:AA) is scheduled to kick off the first quarter earnings season after the market closes on Monday. Wall Street analysts are expecting a third straight quarter of declines in both earnings and revenue, given weakness in aluminum prices.

Four of the S&P 500's top-weighted banks, JPMorgan Chase & Co (NYSE:JPM), Wells Fargo (NYSE:WFC), Bank of America (NYSE:BAC) and Citigroup (NYSE:C), are set to report quarterly results starting on Wednesday. Analysts are expecting first quarter reports in the financial sector to show a 9.2% decline in earnings and a 0.2% rise in sales.

JPM is due Wednesday, WFC and BAC are scheduled for Thursday, while C is on tap for Friday.

Stay up-to-date on all of this week's economic events by visiting: http://www.investing.com/economic-calendar/

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