Foretelling Friday: The Week Ahead

We have a busy week ahead with key central bank meetings and major tech companies releasing earnings. Here’s what to watch out for:

Tuesday:

• Euro Area GDP Q2 and Consumer Confidence

• Microsoft Earnings

Wednesday:

• Bank of Japan Interest Rate Decision

• Federal Reserve Interest Rate Decision

• Meta Platforms Earnings

Thursday:

• Bank of England Interest Rate Decision

• US Jobless Claims

• Amazon and Apple Earnings

Friday:

• US Non-Farm Payrolls and Unemployment Rate

Central Banks:

• Federal Reserve (Fed): The Fed is expected to keep rates unchanged but is anticipated to provide guidance on future rate cuts. The market is currently pricing in a cut for September.

• Bank of Japan (BoJ): There's a 64% probability that the BoJ will increase rates by 10 basis points.

• Bank of England (BoE): There's a 50% probability that the BoE will cut interest rates.

Economic Data: The data suggests that the Fed could start cutting rates this year. If confirmed on Wednesday, this could be positive for markets. However, if the outlook remains unclear, markets could react negatively, potentially affecting US markets and gold.

Earnings Releases:

Four of the 'Magnificent 7' are due to report earnings. Last week, Tesla's disappointing numbers led to downside pressure. After a stellar year-to-date performance driven by AI-related optimism, these stocks are priced for perfection. Any earnings miss could result in significant volatility, particularly in the Nasdaq.

Note that these companies typically report after the market closes.

Stay informed with Unum Capital, Your Profit Partner. Get in contact with us at tradingdesk@unum.co.za to make sure you can capitalize on these movements.