The European Central Bank (ECB) is likely to stand pat on Thursday, after it became the first of the biggest central banks to hike rates since the Iran war began last month. The ECB is expected to hold rates due to the uncertainty ahead, despite a recent escalation in the conflict.

Earnings Season Heats Up

A high-stakes earnings season for US companies is underway, with Alphabet headlining a busy slate of results that poses a challenge for a stock market near record highs. Investors will be highly sensitive to any changes the Google parent makes to its capital spending plans.

Other major companies set to report include Tesla, Intel, and American Express. With more than 40 companies having already reported, overall S&P 500 earnings are expected to rise by 25.7% from a year ago.

Global Market Watch

Macro traders face a challenging week ahead in Asia, with Indonesia expected to hike interest rates on Wednesday. The central bank is struggling to stabilize the currency after the country reported its first trade deficit in six years.

The People’s Bank of China will announce its loan prime rate on Monday, and while it is unlikely to change its policy settings, pressure is mounting on policymakers to accelerate growth after Wednesday’s GDP data – the country’s weakest quarter since the COVID-19 era.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.