Global Markets Brace for Key Economic Data Amid Rising Interest Rate Expectations

PANews posted on X (formerly Twitter). The upcoming week is set to be pivotal for global markets as key economic data from the U.S. and Europe are anticipated, amid heightened expectations of interest rate hikes by the Federal Reserve. The increasing likelihood of rate hikes, coupled with liquidity constraints, has shifted the safe-haven appeal from precious metals to the U.S. dollar. On Tuesday, Japan will release its February core CPI year-on-year data at 7:30 AM (UTC+8). This will be followed by the preliminary March manufacturing and services PMI data from France, Germany, the Eurozone, and the UK, scheduled between 4:15 PM and 5:30 PM (UTC+8). The U.S. will release its March S&P Global manufacturing and services PMI preliminary data at 9:45 PM (UTC+8). Wednesday will see the release of the UK's February CPI month-on-month and retail price index month-on-month at 3:00 PM (UTC+8), followed by Germany's March IFO business climate index at 5:00 PM (UTC+8). The U.S. will publish its fourth-quarter current account and February import price index month-on-month at 8:30 PM (UTC+8), and the EIA crude oil inventory data for the week ending March 20 at 10:30 PM (UTC+8). On Thursday, the U.S. will announce the initial jobless claims for the week ending March 21 at 8:30 PM (UTC+8). The G7 finance ministers are also set to meet, with the meeting extending until March 27. Friday's highlights include a speech by Federal Reserve Vice Chair Jefferson at 7:00 AM (UTC+8), the final March University of Michigan consumer sentiment index and one-year inflation rate expectations at 10:00 PM (UTC+8), and an opening address by San Francisco Fed President Daly at a conference on macroeconomics and monetary policy at 11:30 PM (UTC+8). The preliminary March PMI data from Europe and the U.S. will provide initial insights into business activity during the Iran war and the impact of soaring energy prices. As a net energy exporter, the U.S. economy is perceived to be more resilient than many European countries. With oil prices surging, the Federal Reserve's monetary policy decisions appear to be tilting back towards inflation concerns. The UK's February CPI data, set for release on Wednesday, will be a key highlight for the country's economic outlook. Meanwhile, Japan's February nationwide CPI data, due on Tuesday, will be the next test for the yen. Additionally, the rapidly rising U.S. Treasury yields, driven by soaring energy prices and a shift in global central bank monetary policy stances, are increasingly becoming a risk factor for the stock market.