- Home
- >
- Fundamental Analysis
- >
- Brexit, the Fed and the earnings season will move the markets next week
Brexit, the Fed and the earnings season will move the markets next week
Rating:
Loading...The upcoming week will be under pressure from stock market auctions and the forthcoming EU-UK meeting. The purpose of the meeting is to present the first trade agreement between the European Union and the Kingdom. Expectations for the summit are high after the UK's Brexit negotiator said the deal was "close". However, Brussels is of the opinion that there will be no breakthrough. It is this opposition of the negotiators that will continue to exert pressure on GBP in the first hours of trade next week. The meeting will take place on Wednesday, and I expect the UK sell-offs to be tightened up, not excluding the sharp speculative movements.
High bond yields and the Fed's strong stance, coupled with geopolitical tensions, will continue to put pressure on stock indices. Despite the sharp decline in the indexes, the traders remain calm and for this reason after the initial euphoria, next week will allow for Long positioning with the main trend.
Not to forget the reporting season, which will strengthen its influence over markets next week. In the table below, we can also track the most important reports we expect in the coming week:
As far as the economic calendar is concerned, we expect data on the unemployment rate and the average hourly wage in Britain on Tuesday. The data are important for the island's economy, but given the upcoming EU-UK meeting, I expect them to be "neglected" by traders and to have little impact on GBP and UKX.
Investors will also be waiting for the Fed report we are waiting for Wednesday at 21:00 Bulgarian time. From it will be clear the position of the bank regarding, the raising of interest rates. It is then that I expect the bank's members to confirm their position for another lifting by the end of 2018, and to make a softer tone about the subsequent tightening. If we trade indices, the Fed's report will be crucial for their further development. I expect a consolidation move until Wednesday, after which, according to the Fed's tone, it is good to look for Short or Long positioning respectively.
Economic calendar for the upcoming week - 15.10. - 19.10.2018
Monday
07:30 Japan - Industrial Production
10:15 Switzerland - PPI
15:30 USA - Retail Sales
17:30 Canada - BoC Business sentiment
Tuesday
00:45 New Zealand - CPI
03:30 Australia - RBA report
04:30 China - CPI
11:30 UK - Unemployment rate
11:30 UK - Average hourly wage
12:00 Germany - Economic ZEW
12:00 Eurozone - ZEW economic sentiment
16:15 USA - Industrial Production
17:00 US - JOLTs New Jobs
23:30 US - API Crude oil inventories
Wednesday
Holiday Day in Hong Kong
11:30 UK - CPI
12:00 Eurozone - CPI
15:30 United States - Building permits
17:30 US - Oil Stocks
21:00 USA - Fed report
Thursday
02:50 Japan - Trade Balance
03:30 Australia - Unemployment Rate
03:30 Australia - New Jobs
11:30 UK - Retail sales
15:30 USA - Jobless Claims
15:30 United States - Philadelphia Production Index
Friday
02:30 Japan - CPI
05:00 China - GDP
05:00 China - New Jobs
05:00 China - Unemployment rate
15:30 Canada - CPI
15:30 Canada - Retail Sales
17:00 USA - Existing Home sales
Trader Petar Milanov Read more:
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
