Is tech becoming unstoppable again?

I hardly know where to begin, given how much is going on. This week is shaping up to be one of the busiest of the year, at least in financial markets. Late on Friday, the Department of Justice announced the closure of the investigation into Jerome Powell. That decision will allow the Senate confirmation of his successor, Kevin Warsh, to move forward.

On Saturday, Donald Trump cancelled his envoys' trip to Pakistan, although talks with Iran had been expected following the foreign minister's arrival in Islamabad on Friday. The talks are once again deadlocked and traffic through the Strait of Hormuz remains paralysed, though another twist may yet be coming. Then, in the early hours of Sunday, a man tried to breach security at the White House Correspondents' Dinner, which Donald Trump and several members of his administration were attending. He was quickly overpowered after injuring an officer.

Back to finance. The week will be dominated by meetings at the major central banks: the Bank of Japan on Tuesday, the Fed on Wednesday, and the Bank of England and the ECB on Thursday. As ever, the Fed meeting will draw the most attention. This one will carry added significance, as it is expected to be Jerome Powell's last as chair. One uncertainty remains, however: will he stay at the Fed until his term as governor expires in January 2028, or step down once his successor takes over? That is likely to be the main question at Wednesday evening's press conference.

As for rates, however, no surprise is expected: another hold is on the cards. There is a 99% probability that rates will remain unchanged, according to CME's FedWatch tool. Put another way, there is a greater chance of the Fed cutting rates than of finding a parking space in central London at lunchtime.

The Bank of Japan, the Bank of England and the ECB are also expected to leave rates unchanged. For macro-watchers, however, central banks will not be the whole story. Thursday brings a flood of data, including first-quarter GDP figures for China, Europe and the United States, March PCE inflation in the US, and eurozone inflation.

Thursday will require stamina, not least because it is also the busiest day for corporate earnings. This is the busiest week of the season on that front, with 36% of S&P 500 companies due to report. The numbers matter all the more because they are helping to fuel the impressive rally in US markets since the start of the month. Despite geopolitical tensions, macroeconomic doubts and the continuing disruption in the Strait of Hormuz, investors remain upbeat. Earnings growth for S&P 500 companies is expected to reach 18.6% in 2026, according to FactSet. Judging by that consensus, analysts have even raised their forecasts since the start of the war in Iran. Much of that comes down to the theme that continues to drive the market: AI.

In that respect, it will feel like a GAFAM reunion this week, just like the old days: Alphabet, Apple, Meta, Amazon and Microsoft will report their quarterly performances between Wednesday and Thursday. Yes, I know, that makes AAMAM, not GAFAM. But that was back when Alphabet was still called Google and Facebook had not yet become Meta. Their announcements in AI will be watched closely. In Europe, the calendar is more traditional but no less busy, with Airbus, Air Liquide, AstraZeneca, TotalEnergies, UBS and Schneider all due to report.

In Asia-Pacific, indices extended their gains during the session after a report from US media outlet Axios. Iran is said to have proposed an agreement to the United States aimed at reopening the strait, in exchange for a postponement of nuclear negotiations. The rumour pushed Japan up 1.4% and South Korea to a 2% gain. All markets are in positive territory, with the exception of Australia, which is down a few points. The Axios rumour should allow Europe to open in the green or around breakeven.

Today's economic highlights:

On today's agenda: GfK Consumer Confidence in Germany; CBI Distributive Trades in the United Kingdom; Dallas Fed Manufacturing Index in the United States. See the full calendar here.

• GBP / USD: US$1.35
• Gold: US$4,712.23
• Crude Oil (BRENT): US$107.26
• United States 10 years: 4.32%
• BITCOIN: US$77,773.2

In corporate news:

• Edinburgh Worldwide Investment Trust plans tender offers for up to 100% of its share capital, contingent on shareholder decisions and a potential SpaceX IPO.
• Anglo American has reportedly received three bids for its Australian steelmaking coal business, with a deal announcement expected in the coming months.
• Whitbread plans to sell or lease back a portion of its Premier Inn hotels, potentially releasing GBP1.5 billion for shareholder returns.
• Nordex reports an EBITDA of €130.7 million for the first quarter.
• The board of directors of Intertek has rejected EQT’s improved takeover bid.
• The CEO of Terna will step down in early May to join Eni.
• Cox ABG Group finalises the acquisition of Iberdrola’s operations in Mexico.
• Three potential buyers are reportedly in the running for Anglo American’s coking coal assets in Australia
• Banco Santander is reportedly dropping its challenge to the FCA’s £9.1bn compensation scheme for car finance, according to Sky News.
• Novartis has received EU approval for its treatment of chronic spontaneous urticaria in adults.
• Bachem has signed a CHF 500 million revolving credit facility.
• EON is reportedly in advanced talks to acquire Ovo Energy.
• Nvidia has surpassed a market capitalisation of $500 billion.
• Google plans to invest $40 billion in Anthropic, according to the WSJ.
• Marvell is strengthening its strategy in the optical sector with the acquisition of Polariton.
• Today's key earnings: Verizon, Public Storage, Nuco, Celestica, Deutsche Boerse, Galp Energia, Nordex…

See more news from UK listed companies here

Analyst Recommendations:

• Associated British Foods Plc: Grupo Santander maintains its neutral recommendation and reduces the target price from GBP 22 to GBP 21.30.
• J Sainsbury Plc: Citi downgrades to neutral from buy and reduces the target price from GBP 3.77 to GBP 3.35.
• Hiscox Ltd: Peel Hunt maintains its buy recommendation and raises the target price from GBP 17.50 to GBP 17.90.
• Rio Tinto Plc: Bernstein maintains its outperform recommendation and raises the target price from USD 82 to USD 83.50.
• Molten Ventures Vct Plc: Morgan Stanley maintains its overweight recommendation and raises the target price from CAD 89.20 to CAD 4830.
• Quilter Plc: JP Morgan maintains its overweight recommendation and raises the target price from GBP 2.06 to GBP 2.12.
• Mondi Plc: Jefferies maintains its buy recommendation and reduces the target price from GBX 1225 to GBX 1130.
• Volex Plc: Jefferies maintains its buy recommendation and raises the target price from GBX 540 to GBX 670.
• Corticeira Amorim, Sgps, S.a.: Bestinver Securities downgrades to hold from buy and reduces the target price from EUR 8.05 to EUR 6.95.
• Kuehne Und Nagel International Ag: Oddo BHF maintains its underperform recommendation and raises the target price from CHF 155 to CHF 160.