This week there are many key events and releases starting on Monday, which is a PMI day with reports from Germany, France UK Eurozone and US. The Chicago Federal Reserve’s national activity index will also be released. Large-cap companies will also attract investors’ attention. Traders and investors wonder if the markets finally reached a bottom and looking for strong numbers from the big tech names.
Earnings this week
Third-quarter earnings until now came better than expectations, Netflix’s strong Q3 earnings report supported markets, while Tesla’s third-quarter earnings failed to impress.
Important company financial releases this week are:
Logitech, ARE, BRO, CCK, PKG, ZION and DFS will report on Monday and the forecast is for EPS of $0.85 and revenue of $1.2 billion.
Coca-Cola (KO), Halliburton, GM, CMG, SPOT, Visa, Microsoft (MSFT) and Google (GOOGL) on Tuesday.
Microsoft’s EPS is expected at $2.31 with revenue at $49.5. Google’s EPS is forecasted at $1.27 and revenue at $71 billion.
In the economy, the Case-Shiller home price index the FHFA home price index and consumer confidence will be released.
On Wednesday will report Meta (META), HOG, KHC and Ford (F). Meta expectations are for $1.90 EPS and $27.45 in revenue. Ford projected EPS stand at $0.27 and revenue at $37.45 billion.
Amazon (AMZN), CAT, CMCSA, HTZ, MA, CS, MCD, SHOP, INTC and Apple (AAPL) will report on Thursday. Apple earnings per share are expected at $1.27 with revenue at $88.79 billion. Amazon’s EPS is expected at $0.22 and revenue at $127.49.
On Thursday we have the USA’s first estimate GDP data, analysts expect a 2.25% growth in the third quarter after a contraction in the two previous quarters. Durable goods orders will also be released. Most analysts now forecast a 75bp interest rate hike on the November 2, FOMC meeting. As inflation continues to rise the Fed cannot slow the pace of hikes yet.
Friday is the last day for Elon Musk to proceed with Twitter buyout at $54.20.
Forex
We have three important central Bank meetings this week: European Central Bank, Bank of Canada and Bank of Japan.
EURUSD
This week, economists’ will focus on the European Central Bank (ECB) meeting as inflation hits 10% in the old continent. I think a second 75bp hike looks certain. The PMI survey (Monday) will provide some clues on whether the eurozone economy has contracted even deeper. Economists forecast the rate peak at 3% in the third quarter (Q3) of 2023.
EURUSD closed the week at 0.9862 near to daily and weekly highs recording an outside up day.
GBPUSD
In the UK is all about politics and the election of the new leader of the Conservative Party who will also be the new Prime Minister of the country. Boris Johnson, Rishi Sunak and Penny Mordaunt are among the potential new Prime Ministers. GBPUSD ended the week at 1.1295 mostly supported by a weak US dollar.
USDCAD
Analysts expect a 75 basis points (a 70% probability) hike from the Bank of Canada on Wednesday, October 26, given the upside surprise in inflation which came at 6.9% (YoY)
USDJPY
The Bank of Japan is expected to keep rates unchanged on Friday, October 28, despite the continuing Yen weakness.
USDJPY closed the week at 147.56 after a highly volatile day that send the pair to 32 years high at 151.94.
Nikolas has been involved in the finance industry for over fifteen years spanning across Europe and USA with a depth of knowledge and experience within many aspects of the financial markets. Nikolas gained several years experience with some of the Europe’s leading Brokers, as equity analyst, and trader managing accounts for both Private and Corporate Investors. He enjoys both the fundamental and technical aspects of trading focusing on stock markets and all FX majors. Currently, Nikolas provides analysis and comments to online financial publications. Educational background in Economics (BSc), and Finance (MSc).
