CPI, ECB and the UK budget are in focus this week with some notable earnings and SVB developments.

Economic data

This week shows a flurry of important data, most importantly US inflation figures are due Tuesday, and the ECB meeting is due Thursday. Other important economic data is also being released including Australian unemployment, New Zealand GDP and Chinese retail sales. Markets will be looking for more hawkish comments from the ECB and lower-than-expected figures across the board meaning volatility will be high this week -  especially midweek.

Economic events

The UK budget is due to be revealed Wednesday (12:30 pm UK time). The chancellor will unveil the government’s sending plans and commitments for the 23/34 tax year. Investors will be watching energy and taxes closely.

SVB bank

On Friday SVB bank, the 16^th largest bank in the USA went into administration. US regulators have had to jump in and intervene as a ‘bank run’ happened on the bank. The bank simply did not have the deposits and could not meet the requirements meaning that US regulators FDIC and the FED needed to step in and subside assets to pay out clients of the bank. The FDIC & FED will need to either buy or sell the assets are the bank to ensure clients are paid back, this will likely happen over the next 2-3 weeks.

This shakeup saw markets drop going into the weekend, but because of the good news over the weekend on the intervention, markets on Monday recovered some losses. It's still worth noting that major US indices are in a downtrend so while the recovery is good, other economic factors will still affect the markets this week. A higher posted CPI figure will continue to put pressure on indices and interest rates could move higher and investors might choose to fix on bonds and other interest-bearing products.

Earnings

The week is light on the earnings front. Notable names reporting include Volkswagen on Tuesday, PDD holdings and BMW on Wednesday, Dollar General, FedEx, Deliveroo, Adobe & Oracle on Thursday.