Sujata Rao gives a look at tomorrow’s markets

Traders and reporters will enjoy a busy week, but traders must get through the eventful Thursday.

The Bank of Korea surprised Asia with a rate increase. This was despite the fact that it did not have a Governor in place. It also warned of inflation exceeding 4%. That is up from 3.1% in its February forecast.

In keeping with a trend where central banks have been attempting to curb inflation at all costs, it also cut its economic growth forecasts. Canada and New Zealand delivered rate hikes of half-point on Wednesday, while the European Central Bank might set a deadline for bond purchases on Thursday. This is despite high oil prices that could lead to recession.

Even though data points to rising inflation, bond yields fell in recent days due to fears that the central bank’s inflation fight will cause economies to slow down or even go into recession.

Markets weren’t happy with Wednesday’s negative message by JPMorgan (NYSE) CEO Jamie Dimon regarding “storm clouds in the horizon” and the outlook for the economy. In the quarter that began, his bank posted a profit slump of 42%.

The Q1 results were going to show some weakness after the post COVID bounceback. However, JPM’s fee reductions of 30%-70% from dealmaking and equity banking, JPM’s $1 billion reserve against loan losses, and JPM’s $30-70% fee reductions from investment banking, was still able to shock.

JPM shares plunged 3% as share buybacks are now under question.

Other banks will likely send investors similar messages on Thursday, which is why they are clearly worried. Goldman Sachs (NYSE) is expected to report a 32% decline in revenue for Q1. Shares are already down 16% due to Goldman beating forecasts each quarter for the eight previous quarters.

Do you want to find out where the profits are located? Taiwan Semiconductor, the world’s biggest chipmaker, saw a 45 percent jump in its Q1 net profit. This was due to the chip crunch.

In the meantime, falling Treasury yields lift stock markets. European and U.S. equity prices look poised to follow Asia higher.

These are the key developments expected to give more direction for markets Thursday

Singapore tightens its monetary policy third time in 6 months

– Fed speakers: Philadelphia President Patrick Harker, Cleveland President Loretta Mester

U.S. retail sales, March/weekly jobless/University of Michigan inflation forecasts

Despite 61% inflation, Turkey will keep rates stable

-Earnings: Bancorp, Goldman Sachs, Morgan Stanley State Street, (NYSE:), Wells Fargo Citi. (NYSE:)