Here are the top five things you need to know in financial markets on Tuesday, April 12:
1. IMF expected to cut growth forecasts
The International Monetary Fund (IMF) will update global growth forecasts at 13:00GMT, or 9:00AM ET, and economists largely expect the Fund to notch down its estimates.
IMF managing director Christine Lagarde already gave indications to that effect last week and she is also expected to urge governments to take action in order to improve global economic conditions.
2. U.K. inflation rises to 15-month high, but no pressure on BoE to hike rates
U.K. consumer price inflation (CPI) rose in March to its highest level since December 2014, but at 0.5%, put little pressure on the Bank of England (BoE) to tighten monetary policy as the reading remains far from the 2% target.
The pound never-the-less strengthened on the news with GBP/USD hitting a one-week high after the data release.
3. Earnings season off to a bumpy start
Alcoa (NYSE:AA) gave a dismal start to the U.S. earnings season after the market close on Monday as quarterly profit fell due to lower commodity prices, the stronger U.S. dollar and plant closures or divestments. The metals company also cut its forecast for global sales in the aerospace industry this year. Its shares fell more than 4% in pre-market trade.
On a broader basis, U.S. first quarter earnings per share are forecast to decline 7.9% year on year, the third quarterly profit fall in a row. The energy sector, expected to have its first quarterly loss in at least 10 years, will be the biggest drag.
4. Oil continues its climb pre-Doha
Market participants continued to keep a close eye on oil as the April 17 meeting of major oil producers in Doha approaches.
In the news, Russian energy minister Alexander Novak grabbed headlines on Tuesday with his forecast that oil would hit $40 to $45 in the second half of 2016, with the potential to reach $50 by the end of the year.
Investors also awaited the publication of the weekly inventories from the American Petroleum Institute later on in the day.
U.S. crude oil futures rose 1.07% to $40.79, at 9:56AM GMT, or 5:56AM ET, while Brent oil gained 1.38% to $43.42.
5. Greece’s bailout talks with lenders adjourn with no solution
Talks between Greece and international creditors including the IMF, the European Union and the European Central Bank were adjourned early Tuesday and will continue after the this week’s IMF spring meetings.
The news may not be surprising as negotiations had dragged on for months, but Athens hopes to reach an agreement before a meeting of euro zone finance ministers on April 22.
A positive bailout review would unlock €5 billion in the next tranche of the bailout. Greece faces €3.5 billion in debt repayments in July.