Financial markets are in a buoyant mood as U.S. President Donald Trump signals confidence that the war in Iran will end soon, with talks probably on the cards again this weekend. Investors will learn more about Trump’s pick to lead the Federal Reserve when the former Fed governor Kevin Warsh appears before Congress for his confirmation hearing on April 21. Warsh steps into a tricky backdrop to achieve Trump’s desire for lower rates, with the Iran war’s energy-price surge driving concerns about higher inflation.
Tesla headlines a packed week for U.S. corporate earnings, while March retail sales data could shed light on whether higher prices are hurting consumer spending. Stocks, especially in the U.S., are betting on a happy outcome, with the S&P 500 bouncing back to record highs. The coming week brings a first look at how companies around the world were coping as the Iran war passed the one-month mark in April.
Central banks in emerging Asia will feel the pinch too, with China setting its loan prime rate on April 20. Turkey’s central bank holds a consequential policy meeting on Wednesday, providing a litmus test of its commitment to orthodox monetary policy.
