Earnings finish off on a dynamic Tuesday, currencies and oil can still offer surprises
Volatility continued this week and we’ll probably have to get used to these higher waves as the new normal. The euro finally rebounded and currently trades around 1.134 after briefly touching 1.15.
The talks between Greece and its European partners in the last couple of days will continue as the situation is far from resolved. If we have to compare what’s happening with the last time the news was focused there, this might go on for several months. There will be a back and forth to it and it won’t always be in the headlines, but once it takes a certain direction it will strongly influence the common currency.
Wednesday will see the Eurogroup meeting and there might be a common position on the matter, although we doubt it. The same day will see plenty of action from the U.S. with six major companies reporting results, so volumes and changes will be higher.
Oil is also trying to turn the corner and next week might show us if we’re going to see $40 per barrel, or if the rebound will turn into something more. There is also the possibility of lower volatility, but there just seems to be too much pressure in the pumps right now.
Monday, 9.2.15 – A calm day for markets in terms of expected economic announcements, but Asia and Europe will probably reflect the jobs numbers from the U.S. Only news coming out on the day would push markets in a different direction, but watch out for any support and resistance levels that might be reached.
Tuesday, 10.2.15 – The GBP will be in focus with manufacturing production being unveiled for the last month at 9:30am GMT. The other highlight of the day is Coca Cola’s earnings that will be released before the markets open.
Wednesday, 11.2.15 – Japan has a public holiday so markets there will be closed. As mentioned the Eurogroup will have a meeting and traders will be expecting their joint statement (it doesn’t have a fixed announcement time so keep an eye on the news). It’s not certain that there will be a surprise, but if there is markets will react.
This will also be the most active day for earnings reports – AOL, Pepsi and Time Warner will report before the market opens, while Baidu, Cisco and Tesla’s turn is after the market closes.
Thursday, 12.2.15 – The AUD will be first in line with employment data coming at 00:30am GMT. At 10:30am GMT the governor of the Bank of England, Mark Carney, will hold a press conference focusing attention on the pound once again. The next big announcement will be retail data from the U.S., coming at 1:30pm GMT.
The AUD will close proceedings with a press conference from their central bank governor, slated for 10:30pm GMT (earlier than usual, so keep in mind that it can fall on Friday in some calendars).
AIG is the only noteworthy company with quarterly results and they’ll come after the bell.
Friday, 13.2.15 – Canada will release their manufacturing data at 1:30pm GMT and that might also prompt another attempt at the 1.28 level.
The announcements for the day will conclude with the 3:00pm Consumer Sentiment report from the U.S.
Here are our reads for the weekend, expanding on market issues, including some great articles on technology and its impact on companies and society:
Jack Ma is now China’s third richest person, check out who’s the new number one. (CNBC)
What does Cisco predict for mobile connectivity in the next five years in detailed charts and graphs. (Business Insider)
First reports of a car being tested by Apple to rival Google’s Street View. (The Verge)
Coca-Cola will be announcing their numbers next week, but this one will be remembered for quoting Mein Kampf. (The Guardian)
What do people in one of the richest countries on the planet do when it comes to shopping – drive three hours to Germany of course. (Bloomberg)
Twitter impressed traders and investors last week with good numbers. Here is the background on what is most important for them right now – relations with Apple (qz.com) and relations with Google (The Register).