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The week of truth for the stock markets
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Loading...The US Central Bank meeting will steal the focus of traders in a week, filled with quality economic news, interest rate decisions, employment reports, and more. Let's not forget the corporate season as in the new week there will be many big companies that will report their quarterly reports.
Many companies with large market capitalization will report their earnings, including Apple, MasterCard, Pfizer, Merck, General Electric, General Motors, Verizon, Exxon and Chevron. Their results can certainly affect cash flows and predetermine the short-term trend of stock indices that otherwise continue to trade at record highs.
Part of the optimism of the markets is also due to the Fed's expectation to lower interest rates this week, with forecasts of 25 basis points down, with even the more aggressive 50 bps expected. This is expected to weaken the dollar and leverage the perhaps already tired historical bullish trend of the indices. These forecasts also affect the gold that loses from its positions because of the pre-positioning position in anticipation of the FOMC. It can be assumed that the market is preparing for cheaper long-term placement and that the last successful auction of bonds is one of the last before investors start to turn to gold in the long run, with declining yields on world bonds whose market outperforms $ 13 trillion. Here we are talking about a medium-term depreciation of gold, but market players are definitely preparing to trade the Fed's interest rate decision.
Of course, trade talks will be on the frontline once again, and we all know what impact they have on the fragile balance of stock markets. Even though market participants seem to get used to all this noise between Washington and Beijing, any news here can tilt the scales and create volatility.
It will be interesting to follow the development of the Brexit theme. Boris Johnson said he would "push" preparations for No-deal Brexit after he took the hardest time in negotiations with the European Union. He stood before the UK Parliament last week and commented that he was happy to negotiate with the EU and that he preferred an orderly divorce with Block. He warned, however, that this preference would be feasible only when Europe gave up the guarantees that they wanted for the Irish border, and this is something that Brussels wants to happen. If either of the two parties does not give up on this case, the UK will have to go out on October 31, 2019 without a deal. Boris has categorically said he prefers to go out with a deal by being ready to mobilize the government with all his energy, determination and leadership. But Europe will have to rethink its position and reopen to negotiate for the deal May offered and which was rejected three times by Parliament. But Brussels does not intend to take down the guard. Chief Brexit diplomat Michael Barnier sent a letter to the other European diplomats, saying that Johnson's position was aggressive, but that the demand for the elimination of the so- backstop is simply unacceptable.
Monday:
02:50 Japan - Retail Sales
Tuesday:
06:00 Japan - BoJ Interest Rate Decision
15:00 Germany - CPI
17:00 USA - Pending Home Sales
23:30 USA - API Weekly Crude Oil Stock
Wednesday:
04:00 China - Manufacturing PMI
04:30 Australia - CPI
09:00 Germany - Unemployment Rate
12:00 Europe - CPI
15:15 USA - ADP Employment Change
15:30 Canada - Gross Domestic Product
21:00 USA - Fed Interest Rate Decision
21:30 USA - FOMC Press Conference
Thursday:
04:45 China - Caixin Manufacturing PMI
10:55 Germany - Manufacturing PMI
14:00 UK - BoE Interest Rate Decision
17:00 USA - ISM Manufacturing PMI
Friday:
04:30 Australia - Retail Sales
12:00 Europe - Retail Sales
15:30 USA - NFP
15:30 USA - Unemployment Rate
20:00 USA - Baker Hughes Oil Rig Count
Trader Aleksandar Kumanov Read more:
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