Look Ahead 25/10/23: Q3 earnings; Australian inflation data
Earning continue apace on both sides of the Atlantic. All-sessions on the IG platform we have IBM, Boeing, and Meta reporting while in the UK it’s the turn of Lloyds Banking and ASOS.
(Video summary)
Inflation alert: how the Reserve Bank of Australia could shake the Aussie
There are some important things happening in the trading world on Wednesday the 25th of October that you need to be aware of. Let's break it down for you.
First up, we have the Reserve Bank of Australia releasing the trimmed mean CPI. This basically measures inflation. If the number is weak, it means the Australian dollar could continue to go down in value. On the other hand, if the number is strong, it might be a good time to buy the Aussie. Basically, just keep an eye on this and adjust your positions accordingly.
Next, we have the Ifo business climate in Germany being released. The German DAX has been showing signs of weakness and may keep going down. If it breaks the support level at 149.43, things could get worse. Any bad news from the Ifo number could contribute to this downward trend. So, watch out for that.
At 3 o'clock UK time, the Canadian interest rate decision will be announced. The Bank of Canada is probably going to keep the main base rate the same, but any comments they make about inflation could affect the Canadian dollar. Also, keep an eye on the price of oil because it plays a big role in inflation. This could impact trading opportunities with the USD/CAD pair.
Earnings
Moving on to the UK, we've got corporate earnings from Lloyds Banking and ASOS. Lloyds has seen a drop in its share price because of disappointing earnings from Barclays. If market sentiment keeps going down, Lloyds might have even further declines.
ASOS, on the other hand, an internet retailer, has been doing pretty well with a 30% gain in its stock since July. There's potential for it to go up, but it depends on how the company performs and the overall retail climate.
Deutsche Bank in Germany will release its earnings as well. There might be some pressure on the trading side, but an increase in net interest margin could help balance things out.
IBM will also report its third quarter earnings and its stock has support at the 200-day moving average. If the report is negative, the stock price might drop even more. On the flip side, positive numbers could have the opposite effect.
Lastly, Meta Platforms (formerly Facebook) and Boeing will be releasing their earnings too. These stocks trade on the IG platform and their earnings reports could have an impact. So, keep an eye on them during the session.
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