• UK Consumer Prices Index continues to rise as consumers worry
• Today’s EIA inventory report to determine if there could be any short term shortages or price changes
• JP Morgan and Blackrock will be the key financial companies reporting their Q1 2022 results today

The Consumer Prices Index including owner occupiers' housing costs (CPIH) rose by 6.2% in the 12 months to March 2022, up from 5.5% in February with the largest upward contributions to the annual CPIH inflation rate in March 2022 coming from housing and household services. Today's figures continue to add pressure on consumers which have already reduced their spending as a result of the ongoing rise in prices. Like other recent data, this could further incentivize the Bank of England to take further action in order to contain price growth.

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US earning season begins as stock markets remain uncertain

While stock markets have been increasingly uncertain lately as a result of rising covid cases in China which led to several lockdowns and prospects of a slowdown in demand in the world's second economy, the ongoing Russia-Ukraine conflict and prospects of further fiscal and monetary policy changes by central banks around the world, investors will once again be focusing on the highly anticipated Wall Street earning season which is due to start as usual with large financial institutions. JP Morgan and Blackrock will be the key financial companies reporting their Q1 2022 results today and what investors see in these few days could set the tone for what's to come as the post-pandemic economic recovery continues after the FED has expressed its willingness to be aggressive and change rates consistently throughout the year. Any major disappointments could further add to the negative sentiment seen in the market today and may hinder prospects of a rebound in the short term. On the other hand, better than expected results could prove to be a catalyst for a recovery as investors look past the general uncertainty seen across markets.

Oil.WTI returns above $100 ahead of EIA report

While prospects of a fall in Chinese demand impacted oil prices significantly in the first part of the week, we are currently seeing a noticeable rebound in prices with WTI up 1.5% and back above the key $100 mark. Much of the uncertainty surrounding Russian supplies remains but many have already priced some of the potential impacts of further sanction or bans as countries continue to look for alternative sources. Despite this increase in prices, the situation remains unclear and it will be essential to keep an eye on this area as WTI has reacted noticeably to it in recent times and could remain volatile as traders also await today’s EIA inventory report to determine if there could be any short term shortages or price changes.