Weekly Market Report (17 July 23)

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News Last Week

Market analysts were keenly awaiting the release of US inflation data.
Both headline and core inflation (excluding food and energy) were projected to show a modest rise of 0.2% from May to June, representing the smallest potential increase since last year.
The predicted slowdown in inflation signaled a possible turning point for policymakers, including the Federal Reserve, as they strive to keep price increases in line with their 2% target.
Despite the expected inflation deceleration, the prevailing rate suggested the Federal Reserve might consider resuming interest rate hikes.
Last week also highlighted the economy's resilience, with recent job reports showing solid wage growth and a robust, though slightly lower than anticipated, increase in payrolls.
Following a series of ten consecutive meetings with interest rate hikes, the Federal Reserve was widely expected to continue this trend in the next meeting on July 25-26.
However, the anticipated slowdown in inflation may have led to a pause in interest rate hikes, adding further intricacies to the economic forecast for the rest of the year.

The earnings season will see releases from several major institutions and corporations, including Bank of America, Morgan Stanley, Goldman Sachs, Lockheed Martin, Tesla, Netflix, IBM, Johnson & Johnson, and United Airlines.
The financial reports will provide insights into these companies' performance amid ongoing economic conditions, likely influencing market movements and offering insights into broader economic trends.
The U.S. Census Bureau will release June's retail sales data, providing updates on consumer spending patterns amid fluctuating inflation and employment dynamics.
Other key U.S. economic indicators to watch include building permits, housing starts, and existing home sales for June, as well as the NAHB’s Housing Market Index, all of which will provide insights into the state of the U.S. real estate market.