The week starting on Monday 24th January is full of appointments able to influence the long-term trend of the main stock exchanges from all points of view, from those monetary And corporate passing by some political appointments particularly demanding.
In this first part of 2022, the main stock markets were targeted by profit taking, among which the -11% of the Nasdaq and -7.90% of the index S&P 500. The drop in European lists with ours is less severe Ftse Eb which since the beginning of the year has recorded a -2.18%.
Second Massimo De Palma, Head of Multi Asset Team of GAM (Italy) “the financial markets are speculating both on the number of possible interest rate hikes during the year and on their extent. The tensions we are experiencing these days are the result of a run-up by the various investment houses to change calls, arriving in some cases even estimating seven increases over the course of the year “.
Stock exchanges, eyes on the Fed on Wednesday
In the coming days, the focus of investors will be oriented primarily to Fed meeting (Wednesday) and, especially at the press conference of President Jerome Powell.
According to analysts of MPS Capital Services, the US central bank is expected to keep interest rates unchanged on Wednesday, but interesting insights could come onevolution of rate hikes in 2022 (expect 4 increases from the analyst consensus starting from the March meeting) and on the reduction of the quantitative easing plan.
The elections for the Quirinale begin on Monday
On the political front, the vote for the new President of the Republic in Italy (follow the special Quirinale of Wall Street Italy). It is difficult to make a prediction, everything will remain in limbo until Thursday when only a simple majority of the number of voters is needed for the election of the tenant of the Quirinale. The elections for the President of the Republic will also have inevitable repercussions on the activity of the government grappling with the management of the pandemic and the grounding of the recovery plan.
Also on the calendar is a bilateral meeting between the Vice-President of the European Commission and the British Foreign Minister regarding the Brexit.
All while continuing tensions between the United States and Russia given the huge movements of Moscow’s troops on the border with Ukraine for which an invasion is feared.
Flurry of quarterly
On the corporate front, in the United States the publication of the quarterly reports will continue, with some tech companies and the main pharmaceutical companies still among the protagonists.
Among the main announcements on the calendar, those of Modern, GE, Texas Instruments, J&J, Verizon, Microsoft; Wednesday 26 will be the turn of AT&T, Boeing, Tesla, Intel, Thursday 27 will be the turn of McDonald’s, Comcast, Apple. Finally, on the 28th, the accounts of Chevron and Caterpillar are expected.
In Italy on Thursday 27 the accounts of Unicredit e STM.
The economic calendar
On the macro front, the analysts of MPS Capital Services recall that on Monday there will be the publication of the PMI indices in the Eurozone, UK and United States, as well as on the preliminary numbers of US GDP (Thursday) and German (Friday), the latter expected to contract on a quarterly basis. The figures on French and Spanish growth are also on the agenda (Friday).
Furthermore, on Tuesday the International Monetary Fund will publish the update of his outlook economic that will take into account the latest developments of the pandemic.