Eyes are on the US morning Friday – major bank earnings releases. | Forexlive

Wells Fargo, JP Morgan and Citi Group all report before the opening of the US equity markets Friday, 14 April 2023.

These should provide some indications of how much credit conditions have tightened as a result of the banking sector turmoil events of mid-March.

It seems reasonable to think that credit became tighter.

This is likely to intensify as H2 nears and unfolds. And as the US Federal Reserve’s Federal Open Market Committee (FOMC) is expected to hike again in May. Adding to the rate hikes we’ve already had this cycle.

The lag between hiking and showing up in economic data is unknown. While inflation appears to be on the wane the jobs market is holding up. Equity bulls are foreseeing an end to Fed rate hikes and have already taken US equity indexes higher. The bank reports today could well add further fuel to the fire.