Company / Analytics

Analytics, 05 February 2024

What will drive the markets this week?

On Friday, U.S. stocks surged, with the S&P 500 reaching a new record closing high, fueled by robust earnings and an impressive January employment report. This positive economic outlook, however, tempered expectations of imminent interest rate cuts by the Federal Reserve.

In Europe, markets initially showed gains but ultimately ended flat as they reacted to a surprisingly strong U.S. jobs report — the pan-European Stoxx 600, which had climbed over 0.7% earlier, closed without significant changes.

South Korea’s Kospi led gains in Asia-Pacific markets after Wall Street’s rebound, while China’s CSI 300 hit a new five-year low.

This week investors will gain valuable insights from over a half-dozen Federal Reserve officials, as they give insight into the Fed’s thinking and what recent economic reports mean for future action from the central bank.. Additionally, Treasury Secretary Janet Yellen is scheduled to testify to Congress on U.S. financial stability.

Earnings reports will continue to unfold, featuring updates from various sectors such as consumer, healthcare, and energy companies. Unilever PLC, McDonald’s, and PepsiCo are expected to showcase U.S. consumer strength, while Ford and Honda Motor Co. earnings will shed light on the state of the auto industry. Pharmaceutical firms including Eli Lilly & Co., Amgen Inc., and AstraZeneca PLC are set to report, along with energy giants ConocoPhillips Co. and BP PLC.

The week kicks off with the Senior Loan Officer Opinion Survey on Monday, offering insights into bank lending conditions. Investors can anticipate updates on the U.S. trade deficit, consumer credit, and wholesale inventories. Closing the week on Friday is the annual update of seasonal factors for the Consumer Price Index (CPI), potentially leading to adjustments in previously released CPI numbers.

Events expected to move the markets this week

Monday, Feb. 5

Tuesday, Feb. 6

Wednesday, Feb. 7

Thursday, Feb. 8

Friday, Feb. 9

Choose one or several trading platforms and achieve your goals with Investors Europe

Investors Europe (Mauritius) Limited is authorised and regulated by the FSC Mauritius, license C112011088. Registered address: 4th Floor, Les Jamalacs Building, Vieux Conseil Street, Port-Louis 11328, Republic of Mauritius. Registered Number: 113933.

Any information contained on this website is provided to you for informational purposes only and should not be regarded as an offer or solicitation of an offer to buy or sell any investments or related services that may be referenced here. Investing in certain instruments, including stocks, options, futures, foreign currencies, and bonds involve a high level of risk. Trading on margin comes with substantial risk as well. You must be aware of these risks before opening an account to trade. The income you may get from online investing may go down as well as up.