Major Stock earnings due, plus UK Inflation Falls
By Eliman Dambell
The story surrounding Oil markets has captured the attention of most in recent days. Oil has traditionally been one of the most volatile commodities in the world, with huge swings due the ongoing tensions of supply and demand and the conflicts in the middle east. This week’s sporadic volatile moves created levels of moves never before seen, and as such financial news headlines have neglected other topics as a result.
However as we now are at the midway stage of the penultimate week of April, we look towards the other market moving topics which may have so far been muted.
The second week of earnings season has so far been ignored by many in markets, who have been looking at other financial markets for shorter term trading opportunities. This week so far we have seen IBM release their Q1 figures, which led to their share price drop by 1.3%. Revenues for the tech giant dropped 3% from the same period last year.
Aside from IBM, this week will also see several other US listed powerhouse companies announcing their figures. Off these companies the few which many will be looking towards will be PayPal, Credit Suisse and Delta Airlines.
For those who may not look at individual look at trading the individual stocks, this week may see the major Indices like the S&P 500 and Nasdaq swing depending on the numbers which are released.
Wednesday saw inflation in the UK fall as the GBP Consumer Price Index report was released. The report showed that consumer spending has slowed, as many remain cautious in regards to spending during the COVID-19 crisis. CPI numbers came in at 1.5%, which is 0.5% lower than the Bank of England’s target rate.
This fall came as a result of the UK wide lockdown, where most high street stores which are non-essential have been told to shut their doors. With potentially shoppers at home, with many losing their jobs retailers have not had the opportunity to open, let alone raise prices.
The report found that a fall in clothing related prices was one of the biggest contributors to the fall on the index in March. Typically after the Christmas and the winter sales, clothing prices are increased as we move into spring, and a change of seasons from a fashion perspective. However this year this was not to be the case.
Regarding this drop the Office for National Statistics said. “Prices usually rise between February and March, and this year’s fall is the first since 2015 and only the second since the start of the constructed (inflation) series in 1988,”.
As the week continues traders will also likely be paying close attention to similar CPI numbers which will be released from Canada, Japan and a host of other countries. This Friday also sees the EU commission give its economic forecast, in what could be a market moving projection.