Global indexes and the euro move up in flying colours
After all the established global economies provided us with a shower of different, but relevant, data in the last ten or so days, the verdict is in. Stock markets are happy, the euro has found its footing and Apple continue to impress.
Next week will be the run-up to the UK election, so markets will look for early signs of how the result might turn out. A win for the conservatives and a second term for David Cameron are generally seen as positive for the stock market, although the picture isn’t so clear this time around.
Announcement wise we will have a rate announcement from Australia and US Non-farm payrolls at the tail end of the week, both of which should make a mark on the respective currencies.
Earnings reports will still provide some news, despite most of the bigger names having rolled-out their performance sheets. HSBC, Disney and GSK will be the more prominent names left for the first week of May.
Monday 4.5.15 – Bank holidays in Britain and Japan. A brief window of 15 minutes will provide two trading points, as the Australian Building Approvals and the Manufacturing PMI for China will come out at 1:30 and 1:45am GMT respectively. Apart from that there are no planned announcements that should stir things up by themselves, the tone for trading will most likely be set by Friday’s conclusions.
Tuesday 5.5.15 – Still a bank holiday in Japan. The all important Cash Rate announcement from the Reserve Bank of Australia is due at 4:30am GMT, influencing not only the AUD, but most likely the NZD as well.
Europe will see a busy morning, Spanish Unemployment will be first up at 7:00am GMT and British Construction PMI will follow at 8:30am GMT.
The American session will be primed with the Trade Balances of both the US and Canada coming at 12:30pm GMT, followed by ISM Non-Manufacturing PMI at 2:00pm GMT.
NZD will also have its moment late in the day at 10:45pm GMT with the country’s Unemployment Rate being broadcast.
Wednesday 6.5.15 – Japan will have their final bank holiday for the week. Apart from that the aussie will take its cue from the Retail Sales that will come out at 1:30am GMT. The pound crosses will watch out for the Services PMI at 8:30am GMT and the US dollar will have two announcements that might swing it either way with the ADP Non-Farm Employment Change at 12:15pm GMT and Janet Yellen’s speech at 1:15pm GMT, although the latter is a panel at an economic conference, not directly related to the Fed’s decision making.
Thursday 7.5.15 – Australia will lead the way again with its Unemployment Rate at 1:15am GMT, but the main focus will be the parliamentary elections in the UK. Results will come late at night, but exit polls might have an immediate effect if they are different that the numbers we’ve been seeing.
The other expected indicators are Canada’s Building Permits and the US Unemployment Claims, both at 12:30pm GMT.
Friday 8.5.15 – French bank holiday. Even with elections during the week, there will be one more highly interesting day to stir trader’s blood next week. Friday will begin with a Monetary Statement from Australia’s Reserve Bank at 1:30am GMT and the Trade Balance of the world’s second largest economy which doesn’t have a set time.
But the main course will be the Non-Farm Employment Change from the US at 12:30pm GMT which is expected to either prove the further stabilisation of the US economy, or a potential slip back into low growth.
Check out our longer reading picks from this week:
Analysts and pundits think the Fed has most likely delayed its rate hike, but lets see what someone who is actually deciding this has to say. (Reuters)
Tesla announced today that they will shift their focus to batteries first, then cars. It is indeed a life-changing prospect if everyone had a battery to power their home. Check out Washington Post‘s take on the news, but it goes well with this bit of analysis by someone who is solely interested in company performance at Seeking Alpha (registration required). You can even look at the two articles as a before and after look at the matter.
The world’s seventh largest economy? Hint: it’s not a country. (The Guardian)
In light of the Australian stocks we’ve just added to the Trading 212 PRO platform, here is one of the better resources to find news and data on the companies down under – the Sydney Morning Herald. We also like how they put beer in their business headlines for a brewer that launches a crowdfunding campaign. Cheers, mates.