<p>This coming week, we will see the US Fed meeting on Wednesday. In this May meeting, there will likely be no rate hike but the groundwork could lay for a rate hike in the June meeting. The Fed will likely acknowledge the soft 1Q GDP as a result of transitory factors. Last week, the released 1Q GDP figures saw a growth of 2.3%, the lowest in the past three quarters. However, GDP growth is expected to pick up from expansionary fiscal policy measures such as spending increases and tax cuts.</p><p> </p><p>Core PCE inflation is released on 30 April. If it hits 2.0%, this will be the first time the Fed’s 2% inflation target is reached. The US nonfarm payrolls are released on Friday. A solid jobs report coupled with strong core PCE inflation could lead to markets pricing more rate hikes this year. So far, markets are expecting a total of three rate hikes this year followed by two more in 2019. Any deviation from the market expectations could lead to further volatility in the markets.</p><p> In Asia, there is a historic meeting between the leaders of North and South Korea on April 27. This is the first time a North Korean leader, Kim Jung Un, has visited South Korea in their seven-decade conflict. The positive summit could pave the way for President Kim to meet US President Trump in the coming weeks.</p><p> Compared to the deluge of earnings release last week, there is less companies reporting earnings in Asia. Singapore and Australia banks such as DBS, UOB, National Australia Bank and ANZ Bank are expected to report this week. In addition, mega tech companies such as Apple and Alibaba are slated to release results.</p><p> </p><p><strong><span style="text-decoration: underline;">Monday – 30 April </span></strong></p><p>Macro data: US core PCE, South Korea Industrial Production</p><p>Earnings:</p><p>US and Europe – Allergan, MacDonald’s</p><p>Asia – DBS Group, Postal Savings Bank, BOC HK, HDFC</p><p><strong><span style="text-decoration-line: underline;">Tuesday – 1 May</span></strong></p><p>Macro data: US ISM</p><p>Earnings:</p><p>US and Europe – Apple, Merck &amp; Co, BP PLC</p><p>Asia – ANZ Bank</p><p><strong><span style="text-decoration-line: underline;">Wednesday – 2 May</span></strong></p><p><strong><span style="text-decoration-line: underline;"></span></strong></p><p>Macro data: US Fed rate decision, India PMI, Euro area GDP</p><p>Earnings:</p><p>US and Europe – Mastercard, Kraft Heinz, Mondelez International, Novo Nordisk</p><p>Asia – Itochu Corp, Telekomunikasi Indonesia</p><p><strong><span style="text-decoration-line: underline;">Thursday – 3 May</span></strong></p><p>Macro data: HK retail sales</p><p>Earnings:</p><p>US and Europe – Becton Dickinson, Du Pont</p><p>Asia – UOB, National Australia Bank</p><p><strong><span style="text-decoration-line: underline;">Friday – 4 May</span></strong></p><p>Macro data: US Nonfarm payroll</p><p>Earnings:</p><p>US and Europe – Berkshire Hathaway, Merck &amp; Co, BNP Paribas, Celgene, Societe Generale</p><p>Asia – CNOOC, Macquarie Group, Alibaba Group</p><p> </p><p><b>Edmund Chan, CFA</b></p>