Trending Topics and Week Ahead (Jan 27-31)
|Trending topics:
- Coronavirus outbreak: Investors have been relatively cautious and are not getting ahead of themselves amid fears of a potential pandemic, even as more cases are being reported in new countries and the death toll rises. How have markets responded to the coronavirus outbreak so far? What signs should investors look out for in determining their asset allocation strategies?
- US stocks: The US earnings season is in full swing, with the likes of Amazon, Apple, and Facebook set to announce their respective quarterly earnings in the final week of January. US Q4 GDP is also set to be released on January 30. Are positive US earnings and/or macroeconomic data enough to push global stocks to fresh record highs amid the uncertainties surrounding the coronavirus outbreak?
- US Dollar: The Dollar index has remained resilient, having advanced by more than one percent so far this year. With the Federal Reserve expected to leave US interest rates unchanged at its upcoming policy meeting, what other factors could sway the Greenback’s performance?
- Pound: Mark Carney is set to make his final policy decision as Bank of England Governor, as the UK counts down to Brexit day on January 31. Which will have the greater impact on Sterling over the coming days – the monetary policy outlook or Brexit?
- Euro: Fresh from its first policy meeting of 2020, the European Central Bank appears likely to keep its ultra-loose stimulus measures in place for the time being. Amid the reduced chances of a monetary policy adjustment this year, what other factors could influence the outlook for the shared currency?
- Commodities (Oil/Gold): Gold prices have offered a relatively muted response, in contrast to Oil’s starker reaction, to fears over the coronavirus’ impact on the global economy. What do the price action in these key commodities tell us about the investor’s mindset?
Upcoming events/releases
- US Jan Dallas Fed Manufacturing Activity – Monday, 27 January
- Apple earnings – Tuesday, 28 January
- FOMC decision, Earnings: Facebook, Boeing, Tesla – Wednesday, 29 January
- BOE decision, US Q4 GDP, Amazon earnings – Thursday, 30 January
- Brexit day, Euro-area GDP – Friday, 31 January
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