By Eliman Dambell
The last week of April is set to be one of the most defining of the last few weeks as several, market moving events and occurrences all collude. Earnings season continues with several blockbuster announcements. US consumer confidence and jobless numbers will also be released. In addition to that and as we head into May many nations in the most impacted nations have started setting their plans for lifting lockdown restrictions and re-opening their respective economies.
Germany, Italy and Spain in Europe, President Trump’s guidelines have been well documented in the US, and various other countries have also outlined their hopes for what is to come. In the UK, with Prime Minister Boris Johnson who himself a victim of COVID-19, is set to return to work, almost a month after falling into the virus.
With the “peak” of new virus infections potentially out the way, and as we end April, what else must market participants be aware of?
After several high profile financial services companies and banks reported their Q1 earnings, it is the turn of the tech giants. This week markets will finally see how much the Coronavirus outbreak the likes of APPLE and Amazon. Both juggernauts announce their performance for the first quarter of 2020 on Thursday, with Alphabet releasing their numbers tomorrow.
Many expect APPLE to potentially be the most affected, with the majority of their physical stores closed for business, and a decline in consumer spending. Whereas Amazon’s prime services as well as Alphabet, parent company of Google, capitalising as more and more people browse the internet, within these times of social distancing.
Across the world, this is set to be one of the most stacked weeks in respect to the release of fundamental economic data. Monday started off with the Bank of Japan keeping rates unchanged, however there could be surprises still yet to come. In the US markets await the release several high impact data points. Starting with the consumer confidence report tomorrow, as well as the advance goods trade balance. In addition to this Wednesday will see the trio of the FOMC rates decision, annualized GDP numbers as well as a press conference by FED chair Jerome Powell.
The theme of central bank decisions continues in Europe, where Christine Lagarde will also make a rate decision, followed by a press conference. However markets may be looking closer to Germany and Italy, who will both be reporting GDP and unemployment numbers.
Oil markets also continued to slip in early trading on Sunday evening, dropping by as close to 9%. However after taking the headlines for the majority of last week, Oil news may be set to take a back seat in market related news.