Look ahead: RBA; retail sales; UBS; BP; Snap
The Reserve Bank of Australia is widely expected to keep interest rates unchanged, but its stance on getting inflation back to target may prompt volatility in AUD/USD.
Brace for retail sales figures from Britain and the eurozone. Key earnings come from UBS, BP, Ford and Snapchat-parent Snap.
(AI Video Summary)
Interest rates updates
The Reserve Bank of Australia is expected to keep interest rates steady, but their decision could be influenced by the latest inflation data. There is a possibility that rates may need to be raised later in the year. On the other hand, the US Federal Reserve is considering cutting rates in the spring. These decisions could have an impact on trading news concerning the Australian dollar and the US dollar.
Retail sales updates
In the UK, there is an expectation of a 1.7% increase in retail sales for January, while the eurozone is likely to see a decrease of 0.8% in retail sales for December. These numbers will give us an idea of how the retail sector is performing in Europe.
Oil updates
In the US, it is worth keeping an eye on the API crude oil inventories as oil prices are currently falling. The focus is on demand rather than supply, but tensions in the Middle East could still affect prices. The US is actively trying to ease these tensions.
Earnings season updates
Earnings season is in full swing in the UK, with BP reporting their fourth quarter earnings. Shell's recent announcement about impairment charges caused both their own and BP's shares to fall. However, Shell's shares have seen a 10.5% gain so far in 2023.
In Europe, the focus will be on the banking sector, particularly UBS, which will be releasing their earnings for the fourth quarter. Other notable companies reporting earnings include Spotify and Metro AG . In the US, Ford Motor's fourth quarter earnings will be of interest, especially in light of Tesla's lower growth expectations.
Snap, the parent company of Snapchat, has experienced a decline in their stock since 2021, but it has been slowly climbing back up since October. Wells Fargo upgraded the stock, mentioning positive advertising growth since Apple implemented their privacy initiatives. The market will also be closely watching Snap's use of artificial intelligence, as decisions related to AI could impact the stock.
Lastly, Eli Lilly, Hertz Global, and Omnicom will all be releasing their fourth quarter earnings.
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