Look Ahead 9/8/23: China inflation; Bellway, TUI, Walt Disney results
China’s consumer price and producer price index will dominate the economic picture, especially after trade figures weighed on equities in the previous session. Also, can Disney grow its streaming revenues amid the competition?
(Video Transcript)
All eyes on Chinese data
Hello, welcome to IGTV's Look Ahead to 9 August 2023. I'm Angeline Ong.
First up will be China and the all-important Consumer Price Index and China Producer Price Index numbers. Of course, it will be even more important, given we had China's imports and exports falling much faster than expected in July. This is due to a weaker demand, which has dampened recovery prospects in the world's second-biggest economy.
And indeed, in this session, we saw that many mining stocks and auto stocks faltering after that data was announced. Consumer prices, if we get a weak figure, it will also add to the case for more stimulus by Chinese officials to revive sluggish demand.
Uphill battle for UK housing market
In terms of earnings and trading statements, we still have quite a few notable ones. Bellway is one that I want to concentrate on because we have had a huge amount of information recently and reports from the UK housing market.
As you can see here, Bellway's chart, like many of its peers, has seen a lot of volatility recently. And after hitting a peak in the 22 May period - that's the high for this year - it has traversed lower before trying to climb back up towards that 2260 resistance level point.
A lot of the weakness there coming from many reports, including the Halifax saying that the UK housing market still continues to see headwinds because of the rising interest rates, which make it more expensive for those with mortgages and those wanting to buy for the first time as well.
From Europe, we've got more earnings from a delivery hero out with second-quarter numbers. TUI is well likely to say that it, along with its peers, has benefited from the continuation of the revenge travel scene. Ahold Delhaize is another one to look out for, second-quarter numbers there. And Continental out with first-half numbers.
Can Disney monetise streaming platform?
The big one, of course, out of the United States will be Walt Disney. Just bringing up the chart for you now. It is an all session stock on the IG platform. And Walt Disney has seen its share price traverse lower since the February high.
As you can see, it has also come way off levels seen back when people were stuck at home and perhaps having to stream a lot of the time because of lockdowns. Walt Disney, of course, pouring billions into its Walt Disney Plus or Disney Plus offering to try and make sure that we keep ahead of the game in terms of the streaming space.
The Burbank-, California-based company, expected to report a 4.6% rise in sales to around $22.5 billion from $21.5 billion a year ago.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
