For the last month, we have seen commodities decrease in value and this could have an impact on inflation and the markets moving forward. If the value of commodities significantly decrease, it could potentially pull down inflation. If inflation declines, MAYBE the federal reserve will be less aggressive in raising rates.
Announcements for the week ahead:
• Most banks are raising rates to fight inflation
o The Reserve Bank of New Zealand is expected to increase rates – announcement on Tuesday 10pm ET.
• 52 companies reporting earnings – some financial firms including JPMorgan Chase, Citigrouop, Wells Fargo and US Bancorp – expect some volatility
o Also reporting Pepsi, Delta Airlines and UnitedHealth Group
As always, if you’re in the markets, make sure you have a trade plan.