What is happening in the Global Week Ahead?

• The Federal Reserve will lead a pack of central banks meeting to set interest rates, after 
• Weak U.S. GDP data and President Donald Trump's outspoken criticism of Fed leadership rattled markets
• China trade data and Asian inflation numbers are expected to show the first evidence of the impact of Trump-led tariffs, while 
• Voters in Australia, Romania and Singapore head to the polls

Next are Reuters’ five world market themes, re-ordered for equity traders—
 

(1) The U.S. Fed Meeting Ends on Wednesday. 

The Fed's policy meeting follows data showing a contraction in first-quarter U.S. GDP and pressure from Trump on the central bank to cut interest rates.

While the world's foremost central bank is widely expected to hold rates steady on Wednesday, the focus will be on when it might resume its easing cycle, and whether June is a "live" meeting for policy action.

Central bank officials will have to balance concerns about a potential economic downturn with worries about a tariff-induced revival in inflation.

And the political pressure is intense.

Trump has repeatedly criticized Fed policy and Chair Jerome Powell, fueling concerns about the central bank's independence, though he has lately appeared to rescind threats to try and fire the Fed chairman.
 

(2) Three Major Weekend Elections Run: In Australia, Singapore and Romania.

Three weekend elections hold market-moving potential.

Australia's race pitted Prime Minister Anthony Albanese's ruling center-left Labor party against the Liberal-National coalition led by Peter Dutton, with big spending promises from both threatening the nation's AAA credit rating. Albanese won.

Singapore's parliamentary election tested new PM Lawrence Wong as his People's Action Party faced increasing opposition despite its own spending pledges. Wong won.

Romania's re-run presidential vote meanwhile could bring ultranationalist George Simion to power, alarming Brussels, NATO, and markets already concerned about its endangered investment grade rating. The hard-right euroskeptic is leading polls in the first round after a previous election was cancelled over alleged Russian interference.
 

(3) On Thursday, the Bank of England (BoE) Ends its Monetary Policy Meeting.

Some unusually positive trends in the U.K. stand out against the tariff terror gripping most of the world, with sterling scaling three-month highs against the dollar, the FTSE All-share index jumping +10% in four weeks and rate cut expectations high.

The global trade war threat to Britain's small and open economy, alongside cheaper imports and anticipated slower wage growth, has handed the Bank of England deflationary indicators to feed into forecasting models.

Nearly all traders expect the BoE to cut borrowing costs by a quarter-point on Thursday.

A similar move by Sweden's Riksbank on the same day could add to bets for an eighth straight European Central Bank cut in June.

U.K. bonds are also rallying, with the 10-year gilt yield about 56 basis points below its January high, giving the debt-laden Labour government some headroom to resist further tax hikes and deepen spending cuts.
 

(4) On Tuesday and Wednesday, Brazil’s and Poland’s Central Bankers Also Meet.

It's a complex picture for emerging market central bankers, navigating the trade war and ensuing inflation effects as well as a weaker dollar.

While most rate-setters ponder when they can cut again, Brazil's central bank is on the way up, at least for now.

Central bank chief Gabriel Galipolo has confirmed a hike is likely at the Tuesday and Wednesday meeting as Latin America's largest economy faces a still-uncertain economic outlook and above target inflation.

Meanwhile, the mood has become more dovish in Poland, where the central bank meets on the same days.

Poland's main interest rate has been at 5.75% since October 2023, and a cut was penciled in for the months to come.

But lower-than-expected inflation pressures have led a growing number of policymakers to signal that the cost of credit may fall sooner rather than later.
 

(5) Key Macro Data Comes in on Mainland China’s Economy.

With progress on Sino-U.S. trade talks elusive, investors will monitor trade data from China on May 9th.

As the first reading since Trump's 145% levies on most Chinese goods took effect, it will provide insight on the impact in the world's second-largest economy.

Inflation figures are due on May 10th, as a prolonged battle with deflation is probably the last thing Beijing wants as it braces for a protracted trade war.

Elsewhere in Asia, consumer price and growth data across Indonesia, Thailand and the Philippines are due.

Downside risks, given the threat of hefty U.S. tariffs, have dimmed growth prospects in the region and increased the bets on more rate cuts.
 

Zacks #1 Rank (STRONG BUY) Stocks

I picked a massive global Semi Chip leader, a major European Food company, and a major U.S. Health Insurer.

(1) Broadcom (AVGO Quick QuoteAVGO - Free Report) : This is a $197 a share stock with a market cap of $904B. It is found in the Electronics-Semiconductors industry. I see a Zacks Value score of F, a Zacks Growth score of B, and a Zacks Momentum score of F.
 

Image Source: Zacks Investment Research

Broadcom is a premier designer, developer and global supplier of a broad range of semiconductor devices with a focus on complex digital and mixed signal complementary metal oxide semiconductor (CMOS) based devices and analog III-V based products.

Headquartered in San Jose, CA, Broadcom’s semiconductor solutions are used in end products such as enterprise and data center networking, home connectivity, set-top boxes, broadband access, telecommunication equipment, smartphones and base stations, data center servers and storage systems, factory automation, power generation and alternative energy systems, and electronic displays.

Broadcom’s infrastructure software solutions enable customers to plan, develop, automate, manage, and secure applications across mainframe, distributed, mobile, and cloud platforms.

The company’s Symantec cyber security solutions portfolio, include endpoint, network, information and identity security solutions.

Broadcom also offer mission critical fibre channel storage area networking (“FC SAN”) products and related software in the form of modules, switches and subsystems incorporating multiple semiconductor products.

Broadcom has been aggressively pursuing strategic acquisitions to diversify end markets beyond semiconductors and has been looking to strengthen presence in the infrastructure software vertical particularly.

Broadcom reported revenues of $51.574 billion in fiscal 2024. The company has two reporting segments: Semiconductor solutions and Infrastructure software.

• Semiconductor solutions accounted for 59% of fiscal 2024 revenues. Apart from Broadcom’s semiconductor solution product lines, this segment includes IP licensing business.
• Infrastructure software solutions accounted for 41% of fiscal 2024 revenues. The segment includes mainframe, BizOps, cyber security software solutions, and FC SAN businesses.

Broadcom faces stiff competition from Analog Devices, Cisco, Finisar, GlobalFoundries, Intel, Lumentum, MACOM, Marvell, Mediatek, NXP Semiconductors, Qorvo, Qualcomm, ON Semiconductor, Skyworks, Toshiba and Texas Instruments in the semiconductor solutions market.

(2) Danone (DANOY Quick QuoteDANOY - Free Report) : This is a $17 a share stock with a market cap of $58.2B. It is found in the Miscellaneous Food industry. I see a Zacks Value score of D, a Zacks Growth score of B, and a Zacks Momentum score of C.

Image Source: Zacks Investment Research

Danone SA is engaged in food processing activities primarily in France and internationally.

The company operates in four business lines: Fresh Dairy Products, Waters, Baby Nutrition, and Medical Nutrition. 

• The Fresh Dairy Products division produces and markets yogurts, fermented fresh dairy products, and other specialized fresh dairy products
• The Waters division produces and distributes packaged natural, flavored, and vitamin-enriched water
• The Baby Nutrition division provides food for infants and toddlers to complement breast-feeding
• The Medical Nutrition division offers products to treat disease-related to malnutrition

Danone SA, formerly known as Groupe Danone, is based in Paris, France.

(3) Centene (CNC Quick QuoteCNC - Free Report) : This is a $59 a share stock with a market cap of $29.8B. It is found in the Medical-HMO industry. I see a Zacks Value score of A, a Zacks Growth score of F, and a Zacks Momentum score of B.

Image Source: Zacks Investment Research

Centene Corp. is a well-diversified healthcare company that primarily provides a set of services to the government sponsored healthcare programs. The company serves the under-insured and uninsured individuals through member-focused services. It is also engaged in providing education and outreach programs to inform and assist members in accessing quality, appropriate healthcare services.

Centene offered healthcare services to around 28.6 million members across 50 states as of Dec 31, 2024.

The acquisition of WellCare Health leveraged the company’s position as the largest Medicaid managed care organization in the country. The company retained its market-leading position nationwide, serving 28.6 million members at the end of 2024.

Through a diversified product portfolio and expanding geographic reach, Centene continues to deliver results by executing on its strategy, growing premium and service revenues profitably.

This is evidenced by organic growth within its existing operations, new Medicaid contracts, new contract awards in innovative healthcare services, key acquisitions to enhance its medical management platform and participation in Health Insurance Marketplaces.

Centene acquired Health Net on Mar 24, 2016 which became its wholly owned subsidiary.

Centene offers affordable and high-quality products to nearly 1 in 15 individuals across the nation.

Founded as a single health plan in Wisconsin in 1984, Centene has established itself as a national leader in healthcare services.

Following certain divestments and strategic initiatives, the company changed its segments to Medicaid, Medicare, Commercial and Other. 

• The Commercial segment incorporates the Health Insurance Marketplace and other commercial healthcare products
• The Other segment comprises the pharmacy business, vision and dental services, clinical healthcare, behavioral health, international operations and other operations

Key Global Macro

The Wednesday FOMC meeting is the major event.

On Monday, the ISM services PMI for the U.S. comes out for April. I see a 50.6 consensus, which follows a 50.8 prior March print.

On Tuesday, Mainland China’s Caixin services PMI comes out for April. I see a 51.9 prior March print.

The Euro Area services PMI for April also comes out. I see a 49.7 prior March print.

In the Asia-Pacific region, New Zealand’s household unemployment rate for Q1 comes out. The prior reading was 5.1%.

On Wednesday, the U.S. Fed meeting concludes. There is a Fed Chair Powell presser.

On Thursday, the Bank of England (BoE) policy meeting concludes.

U.S. weekly initial unemployment claims come out. 241K is the prior print. The 4-week average is 226K.

On Friday, Mainland China’s exports for April come out. The prior reading was a +12.4% annualized gain.

Mainland China’s imports for April also come out. The prior reading was a -4.3% y/y contraction.

Mainland China’s Foreign Direct Investment (FDI) for April also come out.

As their blackout is over, a number of regional Fed speakers are set to speak.
 

Conclusion

On April 30th, Zacks Research Director Sheraz Mian produced his latest Q1 earnings update.

Here are his four key points:

(1) Total Q1-25 earnings for the 256 S&P 500 members that have reported results are up +14.0% from the same period last year, on +4.0% higher revenues.

72.3% beat EPS estimates. 62.1% beat revenue estimates.

(2) Zacks continue to believe this earnings season is less about what companies earned in the first quarter of 2025 -- and more about sizing up the earnings impact of the uncertain macroeconomic backdrop.

This is starting to show up in declining estimates for the coming periods.

(3) For Q2-25, Zacks expects total S&P500 earnings to be up +7.0% from the same period last year, on +3.8% higher revenues.

Estimates for the period have been coming down, in a notable way.

This aligns with the negative trend we experienced, before the start of the Q1-25 earnings season.

(4) Estimates for full-year 2025 have also been coming down, meaningfully in recent weeks, particularly since about mid-February.

Estimates for 14 of the 16 Zacks sectors are getting cut.

• Sectors suffering the most significant cuts include Energy, Tech, Finance, and Medical
• Estimates have moved up for the Construction and Aerospace sectors

Want the major Q2 earnings news summarized?

Yes.

Q2 consensus outlooks have been showing up, in a weakened form, notably. The second half of 2025’s EPS growth rates are next in line for downsizing.

Enjoy an excellent trading week!

John Blank, PhD.
Zacks Chief Equity Strategist and Economist