This week, the European Central Bank (ECB) will take the center stage in the markets. On Wednesday, the bank will conclude its two-day meeting and release a statement on the monetary policy. This will come at a time when the EU economy is showing signs of increased weakness. This weakness has come from countries of all sizes including the mighty Germany and the small Malta. In the past meeting, the ECB said that it is likely hike interest rates in December this year. This was further from the previous prediction of a summer rate hike. This comes at a time when analysts and investors are worried that the central bank does not have enough tools to boost the economy in case of a slowdown. This is because of the prolonged low interest rates.
This week, traders will continue to focus on the Federal Reserve. This is because of the announcements on the members who will be nominated by Donald Trump to the board. The president has said that he will nominate Stephen Moore, who is a prominent conservative who has openly supported the president’s call for low interest rates. He is the visiting fellow for the Heritage Foundation. He is currently under scrutiny for his previous tax avoidance, and for failing to pay for his alimony. Trump has also announced that he will nominate Herman Cain to the board. Cain is a prominent republican, a founder of a PAC that supports Donald Trump, and he former CEO of a pizza company.
In the United States, traders will focus on Pinterest, the image search company that is expected to go public soon. The company will begin its roadshow this week. In a roadshow, a company meets with investors and investment bankers in a bid to win funding and build confidence when it goes public. According to the Wall Street Journal, the company will set its IPO valuation to below where it was in the last funding. This will value the company at more than $12 billion. This IPO will come after that of Lyft and is expected to be followed by that of Uber, which is valued at more than $120 billion.
Brexit will be in the headline this week as the April 12 deadline nears. This is a deadline, which the UK was given by the European Union. If there’s no deal, the country is expected to leave the European Union without a deal. In the meantime, the prime minister has announced that she may ask for an extension as the Labour and Tories start their negotiations. Therefore, the risks of the UK leaving the EU without a deal are increasing.
Traders will also watch out for Israel, which will be holding an election tomorrow. Netanyahu, who is facing corruption charges will be on the ballot against Benny Gantz and Moshe Feiglin. Netanyahu is seeking for the fourth consecutive term as prime minister. In this election, many view it as a referendum of Netanyahu’s performance. While Israel is a relatively small country, it is a very important one on the global stage because of its volatile neighbors and its close relationship with the West.