Someone is rocking the boat – instability in Greece, Ukraine and Russia persists
This week saw more turmoil and political influence on markets. The only safe havens from volatility or sharp moves were European indices and oil which stabilised around the $50 mark.
Increased violence and accusations didn’t stop with the proposed and signed ceasefire agreement between European, Ukrainian and Russian leaders. Markets however haven’t reacted strongly to the events in and around Donetsk. Everyone on this side of the Atlantic seems to be in waiting mode, as events unfold and uncertainty prevailing.
The Dow Jones index however is preparing for a new assault on the 18 000 level and bulls are hoping for a more sustained climb after the round number has been tackled. Solid numbers are becoming more consistent from the world’s largest economy and a more positive outlook is expected to be confirmed when the Fed chairwoman, Janet Yellen, will be talking in front of Congress on Tuesday and Wednesday next week.
The rouble will be interesting to watch as things escalate, although it has managed to fall of the highs several weeks ago. As has been the standard in the last weeks – any news on Greece and its debt situation can move the euro in either direction, but a bit of weariness is to be expected as the back and forth is set to continue.
Monday 23.2.15 – Low on economic news, but the German Ifo index is set to be released at 9:00am GMT. It might get a bigger reaction than usual with Germany in the spotlight over Greek debt.
Tuesday 24.2.15 – Although Mario Draghi will be speaking earlier in the day it’s at an event of less importance, so the focus will be on the first of two days of testimony of Janet Yellen in front of Congress – it begins at 3:00pm GMT.
One thing to remember about this testimony is that, like Fed press conferences, it has a statement part, where a scripted text is read out, but it’s followed by a question and answer session where members of Congress inquire about the economy, the Fed’s policies and how they tackling inflation and unemployment.
Final day of the Chinese New Year.
Wednesday 25.2.15 – Undoubtedly the most interesting day next week. It will be the first day after the Chinese New Year celebrations end, so heightened volume is expected during the Asian session. It’s peak is expected at 1:45am GMT, when HSBC will share their PMI number for the country.
It’s also the second day of Janet Yellen’s testimony in front of Congress, but this time a more relevant speech is expected from Mario Draghi – he will testify in front of the European Parliament about the Annual ECB report.
Thursday 26.2.15 – A more business as usual day in terms of announcements: at 12:30am the number for private capital expenditure in Australia will come out and with no other serious news for AUD, this might be the most important time for trading it.
At 9:30am GBP will be in focus with Second Estimated GDP expected to remain at 0.5% – any change might stir things up.
On its heels the targeted number for the ECB’s LTRO will come out at 10:15am GMT. This will give us the exact value off the money they will create and use to loan Eurozone banks.
At 1:30pm GMT the inflation numbers for Canada and the U.S. will be announced.
Friday 27.2.15 – There will be two more important numbers coming out on Friday. The German preliminary CPI will be announced some time during the day (they don’t have a set time for it) and the Preliminary GDP estimate for the U.S. will be stated at 1:30pm GMT.
We present to you our weekend reads, expanding on the most interesting topics from the last five days, as well as other great reads on companies and markets. Advance warning – some of them are longer than usual:
Janet Yellen will be testifying in front of Congress next week and she might have some different thoughts on the health of the U.S. economy. (Bloomberg)
The Greek exit/crisis/meltdown hasn’t left the headlines, but some people are looking at the bigger picture and biding their time. (CNBC)
John Ive is the main designer behind some of Apple’s greatest products – the iPod, the Iphone – and now is putting the final touches on the iWatch (not to mention his influence on the latest lightsaber design in Star Wars). We found two great articles about him – a shorter one (Fast Company) and a very long one (New Yorker), but still worth it.
Another thing caught our eye from the former source – The World’s 50 Most Innovative Companies. There are many well known companies in there that are available in Trading 212 PRO, but most of the others are also doing interesting things. You never know, some of them might become public and make the cut. (Fast Company)