The Week Ahead: Five Mag 7 stocks report earnings plus Fed, ECB, BoE rate decisions

High Fives: Five of the Magnificent 7 stocks report earnings and five of the G10 central banks are action in what’s one of the busiest weeks on the corporate and macroeconomic calendar this year.

Here’s the key events to watch over the next week.

Monday, 27 April

The trading week kicks off without too much on the calendar but markets are sure to be fired up by any developments over the weekend relating to the conflict in the Middle East. Verizon is the only major stock to report.

Tuesday, 28 April

The Bank of Japan has the biggest potential to surprise markets of all the major central banks in action this week. Markets will look for a guide on the chance of a June hike but the BoJ could surprise with one at this meeting. The rate call comes as USDJPY bumps up against the critical 160 level. Elsewhere, the US Conference Board consumer confidence survey will be watched closely along with the ADP weekly employment figures for an indication of how the economy is holding up.

On Wall Street, earnings from Coca-Cola, GM, Spotify, Robinhood, Starbucks and Visa are the highlights on the US corporate calendar.

Meanwhile Barclays and BP Q1 results are the major events affecting the FTSE. BP is likely set for bumper earnings following the jump in oil and gas prices. As for Barclays, I’m expecting good things after Wall Street investment banks had a very good Q1 from trading. We also have the Anglo American first quarter trading update, and earnings from Airbus.

Wednesday, 29 April

Fed Day! No drama is expected from what is most likely going to be Fed chair Jay Powell’s final meeting and press conference, with markets pricing in no change in policy. Forward expectations for Fed rates are flat through to the end of the year as markets await the arrival of Kevin Warsh. It’s most likely the last meeting for Powell, whose term expires on 15 May, as there is an outside chance Warsh is not approved in time for the June meeting. The geopolitical backdrop is more important to markets than this one meeting. Elsewhere the Bank of Canada is seen holding rates steady at 2.25%, with no change expected until the autumn.

Four of the Mag7 stocks report – Microsoft, Amazon, Meta and Alphabet – which will provide market participants with a clearer view of AI capex and ROI. Ford, Qualcomm and Etsy are among the large cap names to report earnings.

Over here, Lloyds Q1 numbers are out, whilst AstraZeneca, GSK and Haleon are also reporting in another busy day for corporate earnings across Europe. Jet2 Q4 numbers will be a chance to provide some detail on forward bookings and the jet fuel shortage. Adidas, Carlsberg, Deutsche Bank, TotalEnergies and Iberdola are among the large caps to report on the continent.

Thursday, 30 April

The Bank of England is not expected to move on rates but this could be a tricky meeting for markets to navigate. In a finely balanced Monetary Policy Committee hawks may push for an immediate hike, citing inflation risks.But governor Andrew Bailey is likely to continue to have the final say and casting vote – and for now his view is markets have been too aggressive in pricing in hikes for this year. Be prepared for the BoE to maintain its wait-and-see approach but talk tough on inflation. The reality is that this is not 2022 and the BoE risks fighting the last war. The European Central Bank is also set to remain on pause with markets not expecting a hike until June and looking for signs of urgency from policymakers.

Meanwhile there are quarterly trading updates from Unilever, Beazley, Weir and Glencore, whilst in Europe several large banks report, including BNP Paribas and Credit Agricole.

In the US the focus is on Apple earnings. The results come just a week after the company announced hardware boss John Ternus will take over from CEO Tim Cook later this year, a move that saw shares dip. Sales of the new iPhone look to be very robust whilst investors will be focused on the CEO transition, growth in China and tariffs. Eli Lilly, Caterpillar, Mastercard, Amgen, Rivian, SanDisk and Twilio are also due up with quarterly earnings cards.

Friday, 1 May

Today marks 60 days since the war with Iran began, which means President Trump requires Congressional approval to continue the war. Under the 1973 War Powers Act the president is obliged to limit the conflict after 60 days without both the House and Senate giving their approval to continue. It’s unclear at present whether he can secure support or what it means should he fail to do so. Past presidents have found ways around the act and Trump can in any event extend the window for another 30 days by writing to Congress that continued use of armed force is the result of “unavoidable military necessity”.

Tokyo core CPI figures and the US ISM manufacturing index will be the main events on the macroeconomic calendar. 
Rounding out the week’s corporate updates in the UK are NatWest, Pearson and Rotork, while earnings from Exxon Mobil, Chevron, Moderna and Estee Lauder are the highlights on Wall Street. European markets will close for the May Day holiday.