Markets Eye Fed Decision, Nvidia's Huang at GTC Conference

Major economies including the United States, Europe, Japan, and China will announce interest rate decisions this week. With international oil prices surging amid Middle East tensions, markets are closely watching how central banks will assess inflation concerns.

The U.S. Federal Open Market Committee (FOMC) meets March 17-18 local time. Markets expect the Fed to hold rates steady at the current 3.5-3.75% range. The key focus will be Fed Chair's assessment of inflation amid recent oil price increases. Hawkish comments emphasizing inflation risks could increase U.S. Treasury yield volatility, while characterizing the situation as a temporary supply shock could provide some relief to financial markets.

On March 19, Japan, Europe, the U.K., and Switzerland will announce rate decisions. The Bank of Japan is expected to maintain its benchmark rate at 0.75%, while the European Central Bank, Bank of England, and Swiss National Bank are also likely to hold rates steady while monitoring Middle East developments. The People's Bank of China will set its Loan Prime Rate, which serves as the de facto benchmark rate, on March 20.

Nvidia's annual developer conference GTC is another event drawing market attention. Investors are watching whether CEO Jensen Huang will deliver another bullish message on artificial intelligence investment.

Domestically, the Bank of Korea will release preliminary February export-import price data on March 17. Import prices have risen for seven consecutive months through January. While the recent oil price surge is not reflected in February figures, the won's depreciation against the dollar could extend the upward trend.

The National Data Agency will announce February employment data on March 18. January saw employment increase by 108,000 year-over-year, the smallest gain in 13 months. Youth employment remained weak while job growth among seniors, which had been driving the labor market, also contracted. Markets will watch whether job conditions improved somewhat in February.

The Ministry of Economy and Finance will publish its March economic assessment report, known as the Green Book, on March 20. The report is expected to address how rising oil prices will affect the Korean economy.