Week ahead: UK bank earnings; NVIDIA Q4
‘Priced for perfection’ is the watch word as markets continue to add weight based on future earnings. Tom Sosnoff, tastylive CEO, talks to IGTV's Jeremy Naylor about why indices at these levels are pricing in ‘beyond perfection’.
Sosnoff also tells us he’s short NVIDIA particularly. NVIDIA publishes its Q4 earnings on Wednesday after the bell; an opportunity to trade the stock all-sessions on the IG platform.
Outside of this it’s all about UK banks. Having seen NatWest publish good numbers on Friday, the coming week brings Barclays, HSBC, Lloyds Banking Group and Standard Chartered.
On the economic agenda, the Federal Open Market Committeeminutes on Wednesday may bring more underpinning to the idea that the FOMC is prepared for the long haul in keeping rates as high as it can for as long as it can to stamp out any vestiges of inflation.
(AI Video Summary)
Australian RBA minutes and Chinese loan prime rate
Next week, there are a number of important events happening in the trading markets that are worth keeping an eye on. The week kicks off with President's Day in the US, which means that trading is limited, but you can still trade on IG's 24-hour markets. On Tuesday, there are a few key events to pay attention to. The Australian RBA minutes will be released, which will give us insight into their interest rates and their outlook on the economy. We'll also see the release of the Chinese loan prime rate, which will be important for understanding the state of the Chinese economy.
Japan, UK and US economic updates
Wednesday brings even more important events. We'll get trade data from Japan, which will tell us about their imports and exports. In the UK, we'll see public sector net borrowing and CBI industrial trends, which will give us an idea of how the UK economy is doing. And in the evening, the US FOMC minutes will be released, which will provide information about the Federal Reserve's thinking on interest rates.
Flash PMI readings and upcoming earnings reports
Thursday will be an interesting day because we'll get flash PMI readings for major economies like Japan, the eurozone, and the US. These readings will tell us about the sentiment of purchasing managers, which can give us an idea of how well the economies are doing. And on Friday, we'll see the release of UK consumer confidence, German GDP and IFA, and earnings reports from companies like Standard Chartered in the UK and Allianz in Germany.
In terms of corporate events, there are a number of earnings releases throughout the week. Some notable ones include Moneysupermarket.com Group on Monday, Barclays and InterContinental Hotels on Tuesday, and NVIDIA on Wednesday. These earnings reports can have a big impact on the stock market, especially for companies like NVIDIA that have seen their stock price rise significantly in recent years.
Fed interest rate cut updates
It's worth mentioning that the Federal Reserve is expected to remain cautious about cutting interest rates, according to the FOMC minutes. And while most earnings reports have been positive so far, the market is particularly interested in NVIDIA's report. There are also concerns that the Nasdaq index may have grown too quickly and could be due for a correction.
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