Retail sales and consumer pricing figures from February will provide further hints about the likelihood of future rate decreases by the Federal Reserve

Inflation Data

The U.S. inflation statistics on Tuesday will be closely watched by investors as they attempt to predict when the Fed may begin reducing interest rates.

The consumer price index is predicted by economists to climb by 0.4% in February, following a 0.3% gain in January that was more than anticipated.

Fed Chair Jerome Powell stated on Thursday that rate cuts would probably be necessary "at some point this year," but he made it plain that he and his colleagues are not yet prepared.

Additionally, market observers will be focusing on Thursday's retail sales data for February, which is predicted to increase by 0.8% following a 0.8% decline in the same period last month.

The economic calendar also includes weekly statistics on new unemployment claims, consumer sentiment, and updates on industrial production.

Ahead of their next meeting the following week, Fed officials will be going into the typical blackout period.

UK Data

The Bank of England and investors will both be concentrating on wage growth when the UK releases its most recent employment data on Tuesday, raising questions about when the country may drop interest rates for the first time.

December saw the worst growth rate in over a year, with average hourly pay dropping to 6.2%. However, this decline was insufficient to persuade BoE officials that interest rates, which are at 16-year highs, should be lowered sooner rather than later.

The Eurozone is scheduled to issue January's industrial production figures in the interim. A full year of decreases was eliminated by the significant boost in output shown in December's report. A further good number would be a positive indication of GDP growth in the first quarter.

Stock Markets

Friday saw a decline in the three major indices of Wall Street, capping a tumultuous week that saw artificial intelligence darling Nvidia reverse course following a recent surge.

Nvidia had its worst one-day performance since late May as it closed Friday down more than 5%. Despite this, the company's shares closed the week up more than 6% on the back of a run that has increased its market capitalization to more than $1 trillion this year.

According to analysts, following the recent surge in markets, investors are locking in profits.

Market players are expected to remain cautious, as the Fed is unlikely to be convinced that price pressures are slowing down rapidly enough to justify a move in the near future by the impending inflation data.

Oil

Even though producer organisation OPEC+ extended production curbs, oil prices fell further this week as markets remained cautious about weak Chinese demand. On Friday, they finished 1% lower.

China last week announced a 5% annual economic growth target for 2024, which many observers believe is unrealistic in the absence of significant additional stimulus.

In light of worries about the global economy and growing output outside the organisation, OPEC+ countries, led by Saudi Arabia and Russia, decided last Sunday to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter. This move provides additional support to the market.

(Sources: investing.com, reuters.com)