Expectations and sentiment for next week 14.10 - 18.10.2019

A tense week that ended well - with a temporary deal between the US and China and with prospects for a total truce. However, whether this will become a fact remains to be seen. The UK is also on track to reach a successful Brexit agreement with the EU. But new factors have emerged, weighing on sentiment, maintaining geopolitical uncertainty. Turkey's offensive in northern Syria and Iran's hit oil tanker are backdating the flames of war, which remain ignored at this stage.

We expect positive sentiment to persist next week, but with a little caution. Market participants will look forward to further details on the interim deal, Brexit and geopolitical developments. The outcome of Friday's talks will have to be confirmed and prove to the financial markets that this will not be another sand in the eye.

Next week begins with a light Monday, with Japan and Canada resting. In the early dawn, we will expect data on the Chinese economy and later industrial production in the Eurozone. Tuesday, the Asian session begins with the latest RBA report and Chinese inflation data. Following the start of the European session, data on the UK labor market and German economic expectations will support European trade at a high pace. On Wednesday again CPI day with data from New Zealand, later from the UK and the Eurozone and Canada. The US is getting involved in retail sales, and oil stocks will keep oil traders under pressure. Thursday, Australia's labor market data will drive the Australian, the US construction sector dollars, and UK consumption data pounds. In a Friday mood, China's GDP data and industrial output will drive markets.

Reporting season starts next week! Market players will start adjusting to it too, with the outlook being quite shaky in the markets. The expectations for this season are mostly negative, so trade cautiously.

The more important reports to keep track of:

Tuesday: BlackRock, Charles Schwab, Citigroup, Goldman Sachs, J&J, JPMorgan, United Airlines, United Health, Wells Fargo.

Wednesday: Bank of America, IBM, Netflix.

Thursday: Morgan Stanley, Philip Morris.

Friday: AMD, American Express, Coca-Cola, eBay.

Saturday: PayPal.

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response