Central banks dominate investor focus this week

Investors are shifting their focus to central banks this week, moving away from trade and political issues. The Federal Reserve will announce its decision later today, followed by the Bank of England, Sweden's Riksbank, and the Swiss National Bank on Thursday. Most of these banks are expected to keep interest rates unchanged. Market analysts will pay close attention to any hints about future policies, especially in light of recent market fluctuations related to U.S. tariffs and a slowing economy. Since the Fed's last meeting in January, ten-year Treasury yields have dropped by 25 basis points. The S&P 500 index has fallen around 7%, and gold prices have reached new highs, currently at $3,038 per ounce. The likelihood of a rate cut today is at zero, with a 15% chance for May and 65% for June. Meanwhile, the Bank of Japan has opted to maintain its current interest rates. The geopolitical situation remains tense, with Israeli airstrikes in Gaza resulting in over 400 casualties. U.S. President Trump and Russian President Putin have agreed to stop attacks on Ukrainian energy facilities, though this falls short of a ceasefire. In corporate news, CK Hutchison's sale of its ports business has drawn mixed reactions, supported by Trump but criticized in Chinese media. Indonesian stocks have stabilized after a sharp decline earlier in the week. Key earnings reports are expected from financial firms in London, along with Chinese companies Tencent and Ping An, as China's markets continue to perform well. Important updates to watch for today include: earnings from Tencent, Ping An, Hargreaves Lansdown, Prudential, and M&G, as well as the final Eurozone inflation data and the Federal Reserve's policy decision.