Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
EU stocks are set to conclude at eight-month peaks
On Friday, EU stock markets are braced for concluding the trading week at their highest levels for eight months, backed by the still-elusive likelihood of a trade agreement between America and China, and also by the confidence that a disruptive Brexit can still be dodged.
However, trading is thin enough and there’re several big moves, with many traders awaiting the American employment report.
After the first hour of trading in the EU, the benchmark Stoxx Europe 600 managed to tack on by 0.1% hitting 388.26. The FTSE 100 headed north by 0.2%, while Germany’s Dax stood still.
As for the Dax, on Thursday, it had overleapt 12,000 for the first time since October, backed by expectations that the two huge external risks to its export-sensitive economy would fade away soon. However, better-than-anticipated industrial output data for February failed to push it up.
The 0.8% leap in the monthly output was provoked by construction that provides some evidence for the argument that Germany’s domestic demand is firm enough to overcome the current rough patch for the export sector. By the way, the German economy has rarely been capable of soaring strongly in the past without a huge contribution from its manufacturers - their output went down by 0.2% in March.
German data really puzzles traders. Yesterday, factory orders showed that decreasing external demand could push the German industry into another downtime. Nevertheless, today’s industrial production numbers back the point of view that the German economy is actually in for a very solid first quarter.
Besides this, British shares were still in a holding pattern because UK Prime Minister Theresa May asked the European bloc for another short extension of the deadline for Great Britain to depart from the European Union to June 30.
The Eurozone will publish the Indicator of GfK Consumer Confidence on November 25, at 09:00 GMT+2.
Last week was not full of events, but we still saw decent moves in the charts of majors, S&P500, NASDAQ, oil, and crypto. The upcoming week will bring even more volatility to your favorite assets!
As Europe moves into recession, next week may provide us with some amazing trading opportunities. Here they are!
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.