Look Ahead 28/9/23: eurozone economic sentiment; Germany CPI; US home and jobs data; Nike
The consumer and economy both sides of the Atlantic are likely to move the euro and the dollar. Look out for inflation and economic sentiment data from the eurozone.
The US releases its final second quarter (Q2) GDP print, jobless claims, and pending home sales data. Plus, Nike reports first quarter (Q1) earnings.
(Video summary)
Important market updates for September 28th
On September 28th, there were a lot of important things happening that could affect the markets. One thing to watch is how people are feeling about the economy in Europe. They are going to release economic sentiment figures, and people are expecting them to be around 92.5 for September.
Forex
Traders are especially interested in these numbers because Germany has recently seen its consumer confidence go down more than expected. Another thing to keep an eye on was how the euro, the currency used in many European countries, is doing against the pound, the currency used in the UK.
The pound has gone up a little bit against the euro after reaching a low point for the past six months. This is because the pound is getting weaker compared to the US dollar, another important currency. People thought the central bank in the UK, the Bank of England, probably wouldn't raise interest rates, unlike the US Federal Reserve, which hinted that they might raise interest rates soon.
Germany is also due to release data about how prices are changing, and they are expecting to see an increase of 4.6% compared to the same time last year. The European Central Bank (ECB) hasn't ruled out raising interest rates to deal with rising prices.
Later in the day, we are also waiting to hear some important information about the US economy - final numbers for GDP in the second quarter, which will show how the US economy is growing. There is also interest in how many people are filing for unemployment benefits and how many people are buying homes. These numbers are important because they could show if there are any problems with the US economy, especially how people are spending their money.
The dollar is getting stronger compared to other currencies, like the pound, and it has been getting stronger ever since the Federal Reserve said they might raise interest rates again.
Earnings
There are some other important companies that are going to release their earnings numbers. For example, Nike is expected to release their earnings report. People are paying attention to this because Nike's stock price is going down and if it keeps going down, it could drop even more. Nike said they were worried about people wanting to spend less money and maybe not buying as many things that they don't really need. This was concerning because the holiday season, when people usually go shopping a lot, was coming up soon in the US.
In summary, the markets are watching to see how people in Europe are feeling about the economy and how prices are changing in Germany, as well as how the euro is doing compared to the pound and the dollar. They are also waiting for important numbers about the US economy and are paying attention to Nike's earnings report amid concerns about less spending.
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