The blue-chip index Dow Jones notches its seventh consecutive weekly gain during the last week, despite the turbulence in the second half.
All three Wall Street benchmarks managed to carve out weekly gains, following late-Friday buying. The S&P snapped a five-day winning streak on Wednesday. The S&P 500 posted a weekly return of less than 0.1% and is up 8% year to date and around 16.2% from its Christmas Eve low of 2,351.10 points.
The Nasdaq is trading well below its 200-day moving average of 7,457.37 points, while the Dow closed below its 200-day average of 25,004.84 points, after cracking above that level earlier in the week.
During the current week, the markets will focus on the development of the US-China trade talks, macroeconomic data and corporate reports.
Upcomming macroeconomics data
During the new week, macroeconomics data will be published from different parts of the world and will give a more complete picture of the state of the world economy at the beginning of the year.
On Monday, February 11, a series of important macro data for the UK will be published, including preliminary business investment data for the fourth quarter of 2018 and the GDP, as well as industrial production and trade balance in December. Later Canada will also come up with trade balance data for December.
The political front, the US Secretary of the Treasury Steven Mnuchin and Trade Representative Robert Lighthizer will travel to Beijing to continue trade talks with China. Although President Donald Trump hinted that a deal before March 1 was unlikely, it would not be a surprise if we see some agreement.
On Tuesday, February 12, the markets will focus on the Australian business climate survey. The Organization of Petroleum Exporting Countries will publish its monthly report. New Zealand’s Central Bank will meet to decide on monetary policy with expectations to maintain interest rates at 1.75%. Markets will, however, monitor whether central bankers will react to the weak labor market data in the country last week and whether their colleagues from Australia will follow and send a “more peaceful” message to the future interest rate movement.
On Wednesday, February 13, will be published the inflation data in the UK for January. The consensus forecast on the market is to slow down annual inflation to 2%, and on a monthly basis, the forecast is even to account for negative values of 0.7%. In the Eurozone, the industrial production data for December will be released. There will be a number of important data in the United States – building permits, inflation, crude oil reserves, and more.
On Thursday, February 14, Japan will release its preliminary GDP data for the fourth quarter. Although the country was struggling with the slowdown in the global economy, as the domestic demand was stable, the first weaknesses emerged in January. However, data for the last three months of 2018 will probably remain strong. The consensus forecast is for a growth of 1.4% on an annual basis and 0.4% on a monthly basis. China will publish its trade balance for January. Eurozone and German will publish preliminary data on the GDP. The US will publish retail sales data, unemployment claims, and producer price index.
On Friday, February 15, the day will begin with data on China’s inflation for January, with expectations for a slight acceleration from 1.9% to 2% YoY. In Japan, industrial production data for December will be released. Retail sales data in the UK and the United States is also the focus of the markets. The Eurozone will come up with data on its trade balance in December.
Upcomming corporate report
In the US, the reporting season is not yet over. This week we will see some important financial statements.
On Monday, February 11, will be released the earnings report of Brazilian aircraft manufacturer Embraer S.A., financial service company MoneyGram International and shipowner Star Bulk Carriers.
On Tuesday, February 12, the markets will focus on the financial reports of ThyssenKrupp AG and TripAdvisor Inc. Interesting events during the day will be statements of Huntsman Corporation, InMed Pharmaceuticals, and LATAM Airlines Group S.A.
On Wednesday, February 13, will be published earnings reports of the commercial real estate services and investment firm CBRE Group and hotel operator Hyatt Hotels Corporation. During the day will be published the statements of ABN Amro Group, Heineken N.V. ADR, and Tullow Oil Plc.
On Thursday, February 14, the markets will focus on the financial report of Coca-Cola. Interesting events during the day will be statements of Agios Pharmaceuticals, Avon Products, AstraZeneca Group, and the financial company CME Group. In Europe, will be released earnings reports of financial institutions Credit Agricole SA, Commerzbank AG, and Credit Suisse Group AG. During the day will be published financial statements of aircraft manufacturers Airbus SE ADR and Bombardier Inc.
On Friday, February 15, will be published earnings reports of Moody’s Corporation and PepsiCo.