Currency traders gear up for the BOJ meeting
USD/JPY was little changed on Monday ahead of the all-important BOJ meeting on Tuesday.
European indices
European indices opened lower this Monday in the wake of the Asia-Pacific (APAC) session, where equity markets mostly recorded daily losses. At 9 a.m., Germany If the business climate is forecast to rise to 87.8 for the month of December from 87.3 for the previous month, This would be the fourth straight month of increases for the index. In the US, the NAHB housing market index is expected to rebound two points to 36 in December. It would be the first rise in five months for the index, which fell to its lowest level this year in November.
USD/JPY
USD/JPY was a little changed on Monday, ahead of the all-important Bank of Japan (BOJ) meeting on Tuesday. No change is expected, but recent comments from its governor and other board members let investors believe that a change in monetary policy is in sight. A Reuters poll published at the end of the previous week shows that 20% of economists believe the BOJ will start dismantling current monetary conditions in January. and over 80% of economists expect the Japanese central bank to ditch negative interest rates by the end of next year.
Uber
Uber will enter the S&P 500 on Monday, a significant event for both stock and index. For the stock, joining the S&P500 will generate institutional interest. ETFs tracking the S&P 500, which are the largest funds of their kind in the world, will be forced to buy the stock. For the S&P500, it is also an important day, as Uber Technologies market capitalization of about $130 billion is four times larger than the average capitalization of the index companies.
US earnings reports
The street expects a few US earnings reports this week. On Tuesday, FedEx is forecast to post earnings of $4.19 per share, which would be a 24% increase from the same quarter a year ago. Revenue should reach $22.37 billion. On Wednesday, the Street expects Micron to post a loss of $1.01 per share on revenue of $4.55 billion.
Nike
Later on Thursday, Nike is expected to post a rise in revenue but lower earnings. Earnings are forecast to fall by 1.2% to 84 cents per share. Revenue should reach $13.39 billion, up from $13.30 billion a year ago. As these expectations suggest, the economic environment remains challenging for Nike. In the context of still-high inflation, the group continues to struggle with slowing consumer demand. And to counter this situation, Nike had to lower its prices. If discounts help support sales and keep inventories under control, it affects profit margins. Nike earnings will also provide an early picture of this year's holiday season, as this earnings period ended on November 30.
Oil
Oil prices traded higher on Monday, supported by lower exports from Russia and as attacks by the Houthis on ships in the Red Sea raised concerns of oil supply disruption. Russia said on Sunday it would deepen oil export cuts in December by potentially 50,000 barrels per day or more, earlier than promised, as the world's biggest exporters try to support global oil prices.
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