What will happen during week 25, 2019? Here is something traders will focus on before the Bell rings
Last week, US stocks reached historic highs as investors reacted positively to the Federal Reserve announcement. The S&P 500, Dow, and Nasdaq ended the week at $2950, $26720, and $7730, which were close to the highest levels in history. Gold too ended the week at a six-year high while the US dollar and the US government bonds declined sharply. This happened after the Federal Reserve announced that it could be forced to slash interest rates in the near future as the global economy weakens.
The following will be the key things to watch this week.
→ How to make gold trading profitable
Less than two weeks ago, two oil tankers were attacked at the Strait of Hormuz, which is a route responsible for two-thirds of all seaborne oil shipments. In a statement, the US blamed Iran for the attacks. Iran denied those claims. A few days later, Iran shot down a US spy drone. Trump responded by ordering military strikes on Iran but cancelled at the last minute. Over the weekend, Mike Pompeo announced that the US will place additional tariffs on Iran.
The US has also conducted cyberattacks targeted at Iran. This means that the two countries could continue their conflicts for the foreseeable future, which could lead to higher oil prices.
This week, the leaders of the 20 most powerful countries in the world will meet at Osaka, Japan for the G20 summit. This is an annual meeting, where they meet to discuss the major global issues. The most important part of this week’s meeting will be Trump’s meeting with Xi Jinping. The meeting comes a few weeks after trade talks between the two countries broke down.
The US has blamed China for walking back on some commitments while China has blamed the US for making unrealistic demands. Investors have poor expectations ahead of the meeting.
→ Trade War, where we are now
This week, OPEC+ members will meet at Vienna, where they will deliberate on the prevailing conditions in the oil market. This will be the first meeting since the December meeting where they agreed to cut productions. This week, there is a likelihood that the members will agree to continue with that policy or go even further.
If this happens, there is a likelihood that the price of crude will continue soaring.
The UK politics on who will replace Theresa May will continue this week. Already, investors and pollsters believe that Boris Johnson will be the next leader. Boris a prominent pro-Brexit leader who served as the foreign affairs minister under Theresa May. He has said that he will take the country out of the European Union on October 31st with or without a deal.
Investors will receive a number of economic data this week.
- Monday: they will receive the sentiment data from Germany, Chicago Fed national activity for May, and the minutes of the previous Russian central bank meeting.
- Tuesday: they will receive the trade data from New Zealand, BOJ and BCB meeting minutes, trade data from Hong Kong, home sales from the US, and consumer confidence data from the US.
- Wednesday: they will receive the interest rates decision from New Zealand, inflation hearings from the UK, US durable goods orders, Mexican unemployment rate, and EIA data.
- Thursday: they will receive the Spanish CPI, SARB quarterly bulletin, US GDP data, pending home sales, and EU sentiment data.
- Friday: they will receive the Tokyo CPI and Japan industrial production data, French CPI, UK final reading of the GDP, US personal income and spending data, and Canadian GDP numbers.