With the start of the corporate season, traders will have another factor in computing their trading strategies for the coming weeks. Given that the S & P 500 has registered an increase of about 15% this year, Wall Street will want to see clear signs that growth will rise in the coming quarters. And if these evidences do not materialize, the markets suffered.
This corporate season offers a market test in search of the truth - has the worst already gone?
Experts forecast a slight decline in corporate earnings in the first quarter of the year, a large part of which is due to temporary obstacles such as the current closure of the government. There is also an unusually high growth in the same period in 2018, while the tax cuts imposed by the Donald Trump administration have still generated fresh capital for the country's markets and economy. This makes the comparison on an annual basis illogical and difficult. We should think that it is best to compare the data with the last quarter of last year than with the first one.
But if investors decide otherwise and interpret the results in the wrong way, the slump in the markets may be sharp and turn the balance to the end of the promotion.
In addition to critical earnings, the topics discussed for Brexit, the possible US-China trade deal, and the fears of an emerging recession remain the face next week.
Monday:
No important economic releases
Tuesday:
04:30 Australia - RBA Meeting Minutes
11:30 UK - Average Earnings Index + Bonuses
12:00 Germany - ZEW Economic Sentiment
16:15 USA - Industrial Production
Wednesday:
01:45 New Zealand - CPI
05:00 China - Gross Domestic Product
11:30 UK - CPI
12:00 Europe - CPI
15:30 Canada - CPI
16:00 UK - BoE Gov Carney Speaks
17:30 USA - Crude Oil Inventories
Thursday:
04:30 Australia - Employment Change
10:30 Germany - Manufacturing PMI
11:30 UK - Retail Sales
15:30 USA - Retail Sales
Friday:
15:30 USA - Building Permits
20:00 USA - Baker Hughes Oil Rig Count
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