Noreen Burke

Investing.com — It’s set to be a busy week in markets, despite being a short one, with U.S. inflation data due and the first quarter earnings season getting underway. Bank earnings will likely fall while inflation could reach new highs. As it struggles with high inflation in the eurozone and uncertainty over economic prospects resulting from war in Ukraine, the ECB will meet. This week’s central bank meetings will highlight the global effort to control inflation. They are being held in Canada and New Zealand. Here’s what you need to know to start your week.

1. CPI U.S.

Consumer price inflation in February was 7.9%. U.S. data released Wednesday shows that it rose 8.5% annually in March, as commodity prices soared due to the conflict in Ukraine.

An increase in inflation would be an argument for higher Federal Reserve rates. Investors may also worry that tighter money policy might cause economic problems.

The Fed hiked rates by a quarter of a percentage point in March and last week’s minutes from that meeting indicated that more substantial rate hikes and a balance sheet runoff are probably on the cards in the coming months as policymakers try to prevent high inflation from becoming entrenched.

2. Information on the economy

The U.S. will release data on Wednesday, apart from CPI figures. Along with data on, Thursday will see the release of the most recent figures for.

Figures on, and the will both be available on Friday. This Friday is the Good Friday holiday.

A number of Fed policymakers are scheduled to address the audience during this week.

Monday’s speakers include Fed Governor Michelle, Fed Governor Christopher Waller and Atlanta Fed President Raphael. Charles, the Chicago Fed President, will also be there.

Fed Governor Lael, Richmond Fed President Tom Barkin and Philadelphia Fed President Patrick Harker will give remarks on Tuesday.

3. Bank earnings

The first quarter earnings season will be launched by the U.S.’s largest banks this week. Analysts are anticipating a decline in financial sector earnings from last year. Investment bank revenues are taking a hit in the wake of Russia’s invasion of Ukraine, while some banks are making provisions for losses related to Russia.

(NYSE:), the largest U.S. bank, is reporting on Wednesday, while results from (NYSE:), Morgan Stanley (NYSE:), (NYSE:) and (NYSE:) will follow on Thursday.

The bank share market has performed poorly so far in 2014, with a loss of 11% compared to the decline of 6%.

Expect bank executives to be quizzed about their views on the viability of the U.S. economic growth in light of the financial fallouts from the conflict in Ukraine, and the aggressive Federal Reserve.

4. ECB

The ECB is to hold its latest policy setting on Thursday and while euro area inflation is running at a record high 7.5%, fueled in large part by accelerating energy costs, policymakers are reluctant to tighten policy amid uncertainty over the impact of the war in Ukraine on the bloc’s economy.

But with inflation still showing no signs of peaking, calls for rate hikes by the more hawkish members of the ECB’s governing council may become more difficult to ignore.

Market observers are increasingly expecting the ECB’s interest rate hike this year.

The central bank had announced in March a decrease in the amount of its bond-buying stimulus program. This would bring the program to an end in September. At the same time, it said an interest rate increase could follow “some time” after the end of bond purchases.

5. Fight against inflation

Market watchers expect officials from both Canada’s and New Zealand’s central banks to announce their biggest rate increases in twenty years. This is in the midst of rising inflation globally.

Data compiled by Reuters shows that markets price in a 90 percent plus probability of a half percentage point rate rise from and a better than 80% chance of the doing the same.

Canadian inflation has been above target since 2024. A potential half point increase in rate could occur in June. New Zealand’s February rate hike of 25% was its third, and it indicated the possibility for larger increases.

This report was contributed by Reuters