Spreadex Market Update
US Earnings The Main Focus This Week as Tech Giants Prepare to Report
The US Dollar is looking a little firmer across the European open on Monday but remains on course to end lower for a second straight month. A quiet data sheet today will see the initial market focus landing on the next wave of US earnings. Coca Cola, ING and HP are among the big names reporting today. Despite a strong start to earnings season, performance trailed off last week with several big names undershooting forecasts. Traders will be focusing mainly on the tech sector this week with Google, Amazon, Microsoft and Meta all due to report.
Key Factors for Today
- USD firmer on back of hawkish Fed comments
- Light data sheet leaves focus on US earnings
- Risk currencies hit – safe havens rallying
- Metals remain under pressure
Market Movers
- S&P holding at $4133
- XAUUSD falls to $1978
- Crude falls to $76.74
- EURUSD holding below $1.10
Econ Calendar
- German IFO Business climate (9am)
- Canadian NHPI (1.30pm)
Earnings
- Coca Cola
- ING
- HP
Earnings Performance Weakening As More Big Names Miss Targets
The recent uptick in USD has dampened the rally in metals for now. Both gold and silver were seen correcting lower from recent highs and remain under pressure across early European trading today. Hawkish commentary from several Fed members last week is keeping the near-term focus on resurgent Fed tightening expectations ahead of the May FOMC. Looking across this week, US GDP and PCE data will be closely watched, along with further Fed commentary.
Equities prices have been a little lacklustre recently. On the back of the firm gains seen across early April, most indices have softened over the last week amidst some disappointing US earnings results and the return of Fed tightening expectations. US earnings this week will have a big impact on stock sentiment, particularly the slew of big tech names due to report. US data across the week will also be on watch, particularly given the return of recession concerns recently which will put plenty of attention on this week’s advance US GDP print.
In FX, the start of the week sees higher beta currencies under pressure with AUD, CAD and NZD posting the weakest results so far. Safe-haven currencies are seeing better demand, however, with CHF and JPY doing well, along with USD. FX pairs have lost a little momentum recently with many settling into ranges. Traders will therefore be hoping for some decisive action this week to establish fresh directional views.
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