World Themes This Week
We’re coming up to the end of the month, but now’s not the time to hit the brakes. We’ve got China’s earnings, the Belt & Road Initiative and oil markets on our radar this week. Who’s ready?
Investors will be watching closely as some of China’s top firms publish their earnings this week. Investors are concerned that a strong Dollar could pose significant headwind for earnings, and will be watching closely for signs of strength in China’s stock market. Solid earnings will do wonders to ward off fears of a prolonged decline in China and broader emerging markets…So don’t blink this week or you might miss it!
Chinese president, Xi Jinping, also heralded another $64bn in deals added to its Belt & Road Initiative, thanks to its latest forum on the global transport route. While more countries are slowly getting on board, many are still skeptical about the lack of transparency and potential debt trap that comes with the partnership. Ominous stuff.
Oil edged slightly lower this morning to extend the slump caused by President Trump’s remarks to OPEC, demanding that the cartel increase output levels to plug the gap left by sanctions on Iraq. Prices fell 3% at the end of last week but found support around the $71.50 mark. Supply will be the determining factor this week, so keep on the lookout for more developments.
US earnings continue this week with some big names, such as Alphabet, Apple and GM set to publish results. Last week’s earnings helped push the S&P 500 to a new high and investors will be looking to continue the momentum if they can.