Markets after Easter -by-Michael Oyebamiji

Market was closed in most countries on Friday and Monday. however, despite the closure, some key economic data were released from US economy; GDP figures released on Friday shows an upward revision beating market expectation of 1% to 1.4% while corporate profits dropped to -8.4% which is the lowest level since the last economic recession. Core PCE price index also missed expectation of 1.8% to 1.7%, Trade balance deficit also expanded to $62.86B against market expectation of $62.23B. Pending Home sales increased massively to 3.5% beating 1.0% market expectation.

Some overnight data from Japan shows Japanese economy is not yet out of their mystery. Unemployment rose to 3.3% from 3.2% while retail sales dropped to 0.5% from 1.7%. Retail sales are slumping ahead of the new sales tax proposed by the Prime Minister of Japan. This might be a sign of the possible impact of sales tax hike on Japanese economy if implemented

Later today, The Federal Reserve chairman, Janet Yellen will be speaking about the state of the US economy. Market will be expecting her to pour more light on the possibility of rate hike and when the market is likely to see a rate hike. Considering FED is data dependent, some economic indicator are currently beyond their target, for example unemployment is almost at full employment but inflation is still below expectations and GDP is also at 1.4%.