An influx of Macro news ahead | Calamatta Cuschieri

Friday Close

On Friday, the European session closed mixed with trading relatively flat after the release of the Eurozone inflation data and a few of corporate earnings. According to Eurostat, the annual inflation in the Eurozone stood at 1.3% in January.

In Germany, the DAX gained 0.18% at the end of the session. The main advancer was E.ON, adding 3.78%. London's FTSE 100 finished 0.13% lower. RBS was among the biggest losers, down 4.65% after it reported its earnings earlier today. French CAC 40 added 0.15% at the close.

This week

In the U.S., durable goods orders and the Institute of Supply Management’s (ISMs) purchasing managers index (PMI) figures dominate the US economic outlook, but it will be Jerome Powell’s first appearance in public as Federal Reserve (Fed) chairman, that is the key event to watch for. The new chairman will give his outlook on the US economy and Fed policy. Powell's debut in the semi-annual hearing will be closely watched for clues of any shift in the committee’s policy stance

Furthermore, US GDP and the Fed's preferred measure of inflation, personal consumption expenditures prices are due on Wednesday afternoon. The latest Fed minutes showed policymakers remain optimistic that the bank can meet its inflation target of 2%, with the decline in the US dollar a great help.

In the UK, after ending the month with consumer confidence data, UK economic data kicks off as we move into March on Thursday, with mortgage data plus manufacturing and construction purchasing manager surveys. UK earnings also dominate, including the housing sector and insurer Admiral.

European markets will be eyeing the final manufacturing PMI numbers as well as the euro area inflation figures. It is believed that the Eurozone’s growth spurt lost a little momentum, though the rate of expansion remains impressive, putting the region in a position to perform a very good quarter. Meanwhile, price pressure is believed to remain high, in part because stronger demand has enabled more firms to raise their selling prices.

Disclaimer

This article was issued by Rodrick Duca, 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.