What will drive the markets this week?
Global stocks closed mostly lower last week, with US equities ending a three-week winning streak due to mixed economic and corporate earnings data.
Earnings parade picks up pace this week, with companies’ major companies from multiple sectors including United Airlines, Coca-Cola, Johnson & Johnson, and Netflix, among others, reporting. In the earning calls, investors will pay attention to corporate guidance on how firms plan to navigate between inflation, cautious consumers, the potential resurgence of COVID-19, and a tight labor market.
In economic data and policy, analysts will track the outcome of the European Central Bank (ECB) meeting on interest rates (Thursday). While no one expects the central bank to start hiking rates, investors are waiting to see if and when it will start tapering its asset purchases and fiscal stimulus measures. Analysts expect the ECB to stay the course, just like its U.S. counterpart.
Monday, July 19:
- Japanese Trade Balance (June)
- Japanese National Consumer Price Index (CPI)
Tuesday, July 20:
- Earnings: Netflix
- Market Holiday in Singapore for Hari Raya Haji
- German Producer Price Index (PPI) (June)
- U.S. Building Permits (June)
- U.S. Housing Starts (June)
- People’s Bank of China (PBOC) Interest Rate Decision.
Wednesday, July 21:
- Earnings: United Airlines Holdings, Coca-Cola, Johnson & Johnson
- Market Holiday in India for Eid al-Adha
Thursday, July 22:
- Earnings: AT&T, American Airlines Group, and Snap.
- Market Holiday in Japan for Marine Day
- European Central Bank (ECB) Interest Rate and Monetary Policy Decisions
- U.S. Existing Home Sales (June).
Friday, July 23:
- Market Holiday in Japan for Sport Day
- Canadian Retail Sales (May)
- U.K. Retail Sales (June)