Data from the Eurozone and US will provide more insight after hotter-than-expected data last week. Eyes also on Walmart and Home Depot as earnings season ends.

European PMIs

The Tuesday flash PMI report for February, which will reveal how the economy is doing after surprisingly expanding in the last quarter of 2022, will be the economic highlight of the week for the Eurozone.

It may be more likely for the European Central Bank to raise interest rates in the future if stronger business conditions are a factor in growing price pressures. This is because of the continuously high inflation rate.

The Ifo Business Climate Index for Germany will reveal how the largest economy in the area is coping with the energy crisis on Wednesday. Economists anticipate indications of recovery to remain modest.

On Thursday, the union will also issue the final inflation statistics for January, which will be closely watched since delayed German data was left out of the initial estimate.

Federal Reserve minutes

The Federal Reserve will release the meeting minutes from its January meeting on Wednesday. After a year of soaring rises, the Fed slowed the rate of interest rate hikes to 25 basis points.

Since then, figures have shown that the annual rate of inflation is no longer falling while producer prices in January increased by the highest in seven months.

The information has led investors to reassess their predictions for how high the Fed will finally hike rates, along with a positive January employment report for the United States. The federal funds rate is now expected to reach its high of over 5.2% in July, according to interest rate futures.

After recent statements from several officials indicating support for such a move, the minutes may provide investors with some insight into the potential for a higher rise at the Fed's forthcoming March meeting.

US Data

On Friday, the United States will release personal income and spending statistics that will be keenly followed. This data includes the Fed's preferred inflation indicator, the core personal consumption expenditures price index.

Updates on both new and existing home sales for January are also included in the economic calendar, along with updated figures for the fourth quarter's gross domestic product and the weekly report on unemployment claims.

John Williams, the president of the New York Fed, will discuss inflation on Wednesday at a gathering.

Earnings Ending

Results from big retailers will provide insight into the resilience of consumer spending amid rising prices as an unimpressive fourth-quarter earnings season comes to a close. This is a crucial issue for investors.

According to JPMorgan retail analysts, Tuesday's earnings reports from Home Depot and Walmart, the two biggest retailers in the world by sales, will "set the scene for everyone else."

Beyond the retail industry, chipmaker Nvidia, COVID-19 vaccine maker Moderna, and e-commerce business eBay will also report in the coming week. Discount retailer TJX Companies will do so on Wednesday.

(Investing.com, Reuters.com)