Financial markets are set for a crucial week as investors await major economic reports and corporate earnings that could shape the next phase of trading. After a strong rebound last week, driven by easing tensions between the United States and China, attention now shifts to the eurozone’s inflation figures, the U.S. jobs report, and a wave of earnings from major technology firms, particularly Apple.
In Europe, focus will center on the eurozone’s flash Consumer Price Index (CPI) for April, scheduled for release on Friday. Annual inflation across the bloc eased to 2.2% in March, the lowest level since late 2024, with core inflation—excluding energy and food—slowing to 2.4%. Preliminary inflation and GDP data from Germany, France, Italy, and Spain will also offer insight into the eurozone’s economic health. Analysts expect inflation to further decline to 2.1% in April, edging closer to the European Central Bank’s (ECB) 2% target. ECB President Christine Lagarde recently signaled that the disinflation process is nearing completion, though the economic drag from new U.S. tariffs may force the bank to maintain a cautious policy stance.
The ECB has already cut interest rates seven times since last June, and analysts anticipate another reduction in June, bringing the deposit rate to 2% for the rest of the year.
Meanwhile, in the United States, investors are bracing for critical data releases, including the non-farm payrolls report for April and the advance estimate of first-quarter GDP. While job creation surged in March with 228,000 new positions, economists expect a slowdown to 129,000 new jobs in April, with unemployment holding steady at 4.2%. First-quarter GDP growth is forecast to slow sharply to just 0.3%, down from 2.4% in the previous quarter, as the economic effects of tariffs begin to weigh.
Adding to the busy week, Apple is set to release its fiscal second-quarter earnings. The tech giant is expected to report 4% year-on-year revenue growth and a 5% increase in earnings. Although Apple benefited from tariff exemptions on electronics, it continues to face significant import duties on goods made in China. The company has announced plans to shift its U.S.-bound iPhone production to India by 2026.
In the Asia-Pacific region, the Bank of Japan’s monetary policy decision will draw close scrutiny. While the bank is expected to leave rates unchanged, Governor Kazuo Ueda has acknowledged that U.S. tariffs could dampen inflation and economic growth. Investors will also watch China’s April manufacturing and services PMI data and Australia’s first-quarter inflation figures, both due midweek.
With high-stakes data and corporate earnings ahead, markets face a pivotal moment that could define sentiment in the weeks to come.
