After another strong jobs report in the US on Friday night, interest rate discussion is likely to remain a key focal point for global markets this week.

Economic Calendar and News
These are the major items on this week’s agenda:

• On Wednesday, US-time, traders will scrutinise the latest Consumer Price Index (CPI) reading, which will shed light on inflation for March. A month ago, we learned that higher gas and housing prices saw CPI accelerate to an annual rate of 3.2%, and 0.4% on a monthly basismonthly. 

• For March, Westpac and NAB anticipate that inflation rose 0.3% month-over-month.

• The minutes from the most recent US Federal Reserve meeting are scheduled for release on Wednesday, local time.

• Other US data set to tricklefilter through includes the March Producer Price Index (PPI), due Thursday, and a day later the Michigan Consumer Sentiment Index. There will also be various scheduled remarks by Federal Reserve officials during the week.

• The European Central Bank will convene on Thursday, while the Reserve Bank of New Zealand and the Bank of Canada are also meeting over the coming days to decide monetary policy.

Shares on Watch
Some of the potential shares in focus this week include:

• Woolworths (ASX: WOW) and Coles (ASX: COL) are in the news following an interim supermarket review relating to Australia’s Food and Grocery Code of Conduct. News reports suggest the review has rejected a proposal for supermarket ‘break-up’ powers, instead recommending a mandatory code of conduct with significant penalties for major breaches.

• The CEO of Treasury Wine Estates (ASX: TWE), Tim Ford, has indicated the wine producer will make an announcement over the coming months on whether to de-merge or divest its more affordable brands, with the company witnessing an acceleration in the market trend towards premium wines.

• US banks will report first-quarter earnings this week, with JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC), and Citibank (NYSE: C) in the spotlight. Last time around, JPMorgan recorded a 19% increase in net interest income to round out the final quarter of 2023, while Wells Fargo suggested its interest income may decline across the year if the Fed opts to slash rates.

• Also reporting earnings this week is Delta Air Lines (NYSE: DAL). With the carrier still working to bring its stock back to pre-pandemic levels, investors may be looking closely at the company’s reported load factor. Recently, both Morgan Stanley and Bank of America lifted their price targets for the share to US$85 and US$53 respectively, compared with a current price of US$46.06 per share.