Volatility and different directions expected for stocks, currencies and indexes this week
Last week saw European indexes continue upwards, bolstered by the succesfull repayment of Greek debt to the IMF. The euro has been continuing its drop and traders are looking to see if it continues the downward trend. The common currency tested the resistance zone around 1.105, but couldn’t go over it and has since dropped to 1.063 on the back of the Fed’s latest signals.
Next week should see plenty of action with important figures from the largest economies coming thick and fast. China’s GDP, inflaction from the US, UK and eurozone will have traders watching, but the one that attracts the most attention is the ECB pressconference on Wednesday.
There will be plenty of trading opportunities next week with earnings season beginning in earnest. Large banks will be first up with Wells Fargo, JPMorgan Chase, Bank of America, Goldman Sachs and Citigroup all releasing figures this week.
Monday 13.4.15 – Japans PPI will start the week at 11:50pm GMT (so a bit before the actual day starts) with the JPY crosses and Nikkei poised to react. China’s trade balance announcement will be the other interesting point during the Asian session and will warm up traders before the GDP announcement later in the week. CNH crosses in the platform will most likely move around after it comes out (it doesn’t have a set announcement time).
European and US data will be quite scarce and the markets will be looking for clues on what will happen in the coming days.
Tuesday 14.4.15 – UK CPI data for March is due at 8:30 GMT and will give some clarity on whether deflation is coming.
The US will be releasing their retails sales and business inventories data at 10:30am and 12pm GMT respectively, providing the first announcement relevant for the USD this week.
Company earnings released: Johnson & Johnson, Wells Fargo & Co, JPMorgan Chase, Intel
Wednesday 15.4.15 – A busy day. China’s GDP will be on everyones radar at 2:00am GMT. It comes out with a a lot of other data including retails sales, industrial production and fixed asset investments, so volatility is pretty much guaranteed. CNH, AUD and most likely major currencies across the board will be affected.
It will most likely set the tone for the European session, at least until the Minimum Bid Rate is announced by the ECB at 11:45am GMT. The second major news event of the day will the ECB press conference at 12:30pm GMT where more information is expected about the QE program in Europe and how banks and businesses are reacting to it.
The CAD will also attract attention, despite the previous big economic announcements. At 2:00pm GMT the BOC will give its Rate Announcement, Monetary Policy Report and Overnight Rate ahead of their press conference at 3:15pm GMT.
One thing that might go unchecked on such a day with so many announcements is the Crude Oil inventories data at 2:30pm GMT which might give a push in either direction to the price.
Company earnings released: Bank of America Corp, Netflix
Thursday 16.4.15 – With China and Europe the main players on Wednesday, its Australia and the US’s turn on Thursday. 1:30am GMT will see the Employment Change and Unemployment Rate in Australia announced, which is bound to move the AUD and Asian assets.
The US will share their numbers for Building Permits and Unemployment Claims at 12:30pm GMT, as well as their Philly Fed Manufacturing Index at 2:00pm GMT.
Company earnings released: Unilever, Diageo, SABMiller, Goldman Sachs Group, UnitedHealth Group, American Express
Friday 17.4.15 – London will be the first in the spotlight on Friday. The GBP is expected to react to the Average Earnings Index and Claimant Count Change at 8:30am GMT.
Next we move to North America with Core CPI numbers from Canada and the US in quick succession, at 12:30pm and 2:00pm GMT respectively.
Company earnings released: General Electric Co, Honeywell International Inc
Here are our reading selections from last week:
Heard of market bubbles? Price levels that go unrealistically high and then pop. Here’s a neat and tidy article about them that might help your trading. (Forbes)
Google has always been diversifying, but this is something new – LendingClub.com just went public under its wing. (Americanbanker.com)
And another development for the latter is that Alibaba have also chosen them for some services. (Fortune)
Wonder where all the oil that isn’t being used is going? Here’s what’s been happening in North Dakota where we have a bit of an inneficiency. (New Scientist)
Some sci-fi for dessert, but something from the real world. A few drops and you have night-vision. (SecondNexus)