The week ahead | Calamatta Cuschieri

Earnings

Investors turn their attention to the latest company numbers and forecasts as the quarter’s last big wave of earnings starts to roll in. Major retailers join S&P 500 companies reporting in the week ahead with earnings expected from Nordstrom, Macy's, Kohl's and JC Penney. Merger news could also dominate, as traders await a $100 billion bid for Qualcomm by Broadcom.

Lloyd’s of London insurer Hiscox will provide the market the latest update on the impact of hurricane season in its earnings on Tuesday with Marks & Spencer to publish their latest interim results. About 73 percent of companies reporting so far have beaten earnings estimates, and earnings growth is better-than-expected at 9.4 percent, according to Thomson Reuters.

Economics

With Central Bank decisions out of the way, the focus in Europe returns to Brexit talks. The December summit is approaching fast and so far there is no sign that there has been any progress on the key issues EU leaders want to have clarified before they agree to start trade talks. Meanwhile, investors await just a few economic reports in the US, with wholesale trade Thursday and consumer sentiment Friday, giving them a chance to digest the flood of data that came in the previous week, such as the new Fed Chair and the Tax Plan.

The Reserve Bank of Australia is set to take centre stage as the Bank is expected to hold the setting for the cash rate steady at 1.5% on Tuesday, followed by several other central bank meetings in Asia. The Reserve Bank of Australia is also scheduled to release an updated set of projections in its Statement on Monetary Policy on Friday.

Market news

Global stock markets were broadly lower in Asia on Monday, despite record gains on Wall Street, with Hong Kong lagging behind the region, as China-related firms pulled back. Oil climbed from the highest close in two years as an anti-graft probe in Saudi Arabia was seen to consolidate power in the hands of Crown Prince Mohammed bin Salman, who’s backed OPEC-led output cuts. European markets edged lower with US futures showing few clues to the open.

Disclaimer

This article was issued by Peter Petrov, Junior Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.