This week, we saw a significant improvement in risk-on sentiment, as a result of which the Dow Jones, S&P 500 and Bitcoin registered new ATHs against the background of the weakening US dollar.
The weak USD also had a positive effect on oil, which is trading at peaks around $ 84 dollars. Saudi Arabia has said that additional OPEC + oil will not help curb rising gas costs, predicting that oil demand could rise to 600,000 barrels a day.
Gold rose 1.58 percent during the week after Christopher Waller said Tuesday that the Federal Reserve should begin reducing its bond-buying program next month.
On Monday, China reported GDP lower than expected at 5.3%, reaching 4.9% in the quarter. Negative data weakened markets before the US session opened, but the SPX500 later recovered and recorded a new ATH – closing at 4480.
Building Permits data on Tuesday was weaker than expected. As a leading indicator, Building Permits provides important information about the state of the banking system in the United States, taking into account the fact that companies’ construction activities are financed primarily by lending, while consumer purchases are also financed by lending.
That is, this indicator reflects the ability and intentions of the banking industry to lend to the sector. Despite worse-than-expected data, market sentiment was positive as the SEC approved Proshares’ bitcoin ETF, further boosting market risk-on sentiment.
At the beginning of the European session on Wednesday in the UK published monthly CPI data, reporting lower than expected inflation rates and a corresponding decrease from 3.2% to 3.1%, these data are extremely important for the forex market, as directly affect the timetable for raising interest rates in the kingdom.
On Friday, Fed Chairman Jerome Powell said the central bank would stick to the announced timetable for starting a reduction in monthly asset purchases in November, adding that the process would be finalized by mid-next year, paving the way for an increase in interest rates.
What to expect next week
Next week is one of the most important for the quarter. BIG TECH reports start with names like MSFT, FAANG, Visa and others.
There are no important economic releases or indicators on Monday. Traders will focus on Facebook and HSBC earnings reports.
On Tuesday, the United States will publish the report on new home sales. Lagging indicator, which gives us guidance on the ability and desire of consumers to buy new homes.
During the day and before the closing of the markets revenues are reported – LLY, GE, UPS, LMT. The more important events happen after the closing of the markets when earnings release will be released – MSFT, GOOGL, Visa, AMD, TWTR and others.
On Wednesday, in terms of economic indicators, we have a more significant one – durable goods. A higher value indicates increased production activity.
Revenue companies start with some big names in the F&B sector – KO, MCD, Kraft Heinz. Other equally important reports are – BA, GM, F, EBAY, Spotify, Hilton, DB, Raymond James.
The monthly GDP and Pending Home Sales of the USA will be published on Thursday. Two confirmation indicators. Revenues are reported by two of FAANG – APPL and & nbsp; AMAZON. Other revenues are expected from – Mastercard, SBUX, Shopify, CAT and others.
The week ends with one of the most important and leading economic indicators – Michigan Consumer Sentiment. Because US GDP consists primarily of consumer spending, it is important to be aware of consumers’ willingness, ability, and future prospects to buy goods and services.
Revenues are reported by companies from the sectors – chemical, petroleum, energy – Chevron, XXon Mobil, AON PLC, Huntsman.
Junior Trader Nikolay Stoychev