(ABM FN-Dow Jones) Investors can get ready for a busy week, with plenty of macro data and some significant corporate results.
After Just Eat Takeaway released a quarterly update last week, it will be the turn of AEX heavyweight ASML to open the books next week. The Veldhoven semiconductor specialist will provide figures on Wednesday, followed on Friday by the results of Beter Bed. The Dutch agenda has thus been discussed.
In the US it is a lot busier. Last Friday a number of financials took the plunge. And the banks will also dominate next week. On Tuesday it is Goldman Sachs’ turn and on Wednesday Bank of America and Morgan Stanley are on the roll. Then Procter & Gamble will also open the books.
On Thursday, AkzoNobel investors will pay attention to PPG’s numbers, after Sherwin-Williams issued a profit warning last Friday. Demand wasn’t Sherwin’s problem, but supply chain disruptions were. Turnover increased, but profit was under pressure.
On Thursday evening, investors will not only look at Netflix’s series, but also at the quarterly results that the company publishes.
On Friday, the international agenda is empty.
The macro agenda is also well filled for next week. The week starts on Monday with a series of figures from China. We can expect retail sales and economic growth, among other things. And according to analyst Robbert Manders of IG Netherlands, investors should keep a close eye on those numbers.
Manders calls China the biggest risk for equity investors in 2022. Chinese credit growth is disappointing, as are retail sales. And the Bank of America Dollar High Yield Corporate Issuers China Index is currently at its all-time low. Chinese companies with a low credit rating have to pay an average interest of 22.5 percent if they want to refinance. “Who can finance themselves like that and still be viable? That’s not a healthy situation and many of those companies will go bankrupt.”
Click here for: China biggest risk for equities in 2022
By the way, Wall Street will be closed on Mondays to celebrate Martin Luther King Day. Usually this means quiet trading in Europe.
On Tuesday there will be an interest rate decision from the Bank of Japan and the German ZEW index. The Empire State index comes from America. And oil investors are paying attention to OPEC’s monthly report.
Mid-week it’s inflation that draws attention, with consumer prices out of Germany and the UK. The entire eurozone follows a day later.
Inflation is a thorny issue at the moment, not least for central banks when setting their monetary policy.
The Federal Reserve is catching up on inflation, according to Fidelity International [..] and to get ahead of the yield curve.”
The market is now counting on 4 rate hikes this year and quantitative tightening.
However, such an aggressive stance will be too much, according to Fidelity, now that economic growth is also slowing. “The Fed will eventually have to back down,” Fidelity’s Grethe Schepers expects.
Click here for: four Fed rate hikes too much of a good thing
Incidentally, according to Schepers, a climate of tightening is not necessarily negative for equities. “Real interest rates are still favorable for risky assets and we expect it to remain so.”
Fidelity is counting on 3 rate hikes in 2022, but thinks the Fed will hold off on deleveraging until next year at the earliest.
On Thursday, the Dutch Central Bureau of Statistics will publish a series of figures. Weekly aid applications in the US will also draw attention again.
The Turkish central bank will also make an interest rate decision. At the beginning of this month, inflation in Turkey rose to 36 percent.
Friday starts with inflation data from Japan and then retail sales in the UK are on the agenda. There is also a figure on consumer confidence in the eurozone.
Bron: ABM Financial News–
From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.
