What will happen during week 32, 2019? Everything Investors Will Be Watching in the Coming Week before the Bell rings
In the past three weeks, investors have been busy receiving important second quarter earnings from companies around the world.
While many companies – especially US banks – reported better reports, many industrial companies disappointed.
Meanwhile, the world is now facing a trade and a currency war between the two biggest economies. This is a war that nobody knows when it will end. One thing we know about trade wars is that they are not easy to win because there are no winners.
This article looks at the key expectations for the coming week.
On Monday, the US Department of Agriculture (USDA) will release the World Agricultural Supply and Demand Estimates (WASDE) report. This is a monthly report that helps guide farmers, investors, and policymakers on the state of the agricultural sector. As the name suggests, it provides a forecast of the key agricultural crops.
The main crops covered in the report are soybeans, corn, wheat, and cotton. The report will come at a time when China has threatened not to buy American soybeans (one of the key assets to watch). This is a major issue because the US is the biggest producer of soybeans while China is the biggest consumer.
All this, coupled with the spread of the African Swine Fever disease has led to the price of soybeans to drop to multi-yearly lows.
United Kingdom Data
In recent weeks, the focus on the United Kingdom has been about Brexit. Boris Johnson, the country’s new prime minister has pledged to leave the European Union on October 31st, with or without a deal.
Leading institutions like the World Bank, ECB, and BOE have warned that leaving without a deal could have significant implications for the economy.
On Tuesday, the country will release the employment data. Investors expect the unemployment rate to remain unchanged at 3.8% while average earnings plus bonus are expected to decline to 3.1% from the previous 3.4%. The claimant count is expected to decline from 38k to 22.8k.
On Wednesday, the Office of National Statistics (ONS) will release the inflation data, while On Thursday, investors will receive the retail sales data.
European Union Data
On Wednesday, the European Union will release the second reading of the second quarter GDP data. Investors expect the data to show that the economy expanded by 1.1% in the quarter. On a QoQ basis, they expect the economy to have grown by 0.2%. This data will be watched closely because of the broad slowdown in the European Union countries.
Other key data to watch from Europe will be the CPI data from Sweden, the GDP data from Germany, and the Trade Data.
United States Data
The week will be a bit busy for investors in the United States. On Tuesday, the country will release the CPI data for July. Investors expect the headline CPI to increase slightly from 1.6% to 1.7%. The core CPI is expected to remain unchanged at 2.1%.
On Thursday, the country will release the retail sales data. The core retail sales for July are expected to have remained unchanged at 0.4% while the headline retail sales are expected to decline to 0.3%.
On the same time, investors will receive the manufacturing data from the Philadelphia Fed. On Friday, investors will receive the building permits and housing starts from the country.
Meanwhile, from China, investors will receive the industrial production data for July on Wednesday. These numbers are expected to show that the industrial production increased by 5.8% in July, down from 6.3% in June.
The retail sales are expected to decline to 8.6% from the previous 6.3%.
Investors will continue to receive corporate earnings for a number of companies.
Monday: the top companies that will report will be Agilent Technologies, Tencent Entertainment, Bloom Energy.
Tuesday: the key companies that will release are Avaya, GDS Holdings, MakeMyTrip, and YY.
Wednesday: companies like CAE Inc, Elbit Systems, Embraer, and NetApp will release.
Thursday: Applied Materials, Globant, NVIDIA, and Lenovo will report.
Friday: investors will receive data from Deere and Aurola Mobile.
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