What will drive the markets this week?
Investors are likely to be closely monitoring a range of macroeconomic data releases and events this week that could impact the performance of the stock market. The week will kick off with a meeting between UK and EU leaders on Monday to finalize the Northern Ireland deal. The Northern Ireland protocol has been a major sticking point in the Brexit negotiations, and a resolution could help to alleviate some of the uncertainty surrounding the UK’s future relationship with the EU.
In terms of economic data, investors will be looking out for India’s GDP figures, US/China PMI numbers, and EU inflation data. The auto sector is also expected to be in focus, with monthly sales data set to be released.
Meanwhile, the oil market is likely to be affected by the strength of the US dollar and the market’s reaction to Russian supply cuts. Yulong Petrochemical has agreed to crude supply deals with BP and Chevron for 2024, while ADNOC has increased the stake sale of its gas business to 5%.
In the UK, the opposition Labour party has warned that the country is in a downward spiral, as it sets out its growth plan. Thames Water has pledged $1.92 billion to cut sewage discharges, while Northern Irish police have arrested a sixth man in connection with the shooting of a detective.
Overall, the stock market is expected to remain volatile this week, as investors react to a range of economic data releases and events. While some positive news could help to boost sentiment, ongoing uncertainty over issues such as Brexit and the oil market could weigh on investor confidence.
Events expected to influence financial markets in the week
Monday, February 27
- Occidental Petroleum (OXY), Workday Inc. (WDAY), Heico Corp. (HEI), Li Auto (LI), Zoom Video Communications (ZM), BioMarin Pharmaceutical Inc. (BMRN), and Viatris Inc. (VTRS) report earnings
- Pending Home Sales (Jan)
- Durable Goods Orders (Jan)
- Dallas Fed Manufacturing Index (Feb)
Tuesday, February 28
- Target (TGT), Bank of Montreal (BMO), Bank of Nova Scotia (BNS), Monster Beverage Corp. (MNST), Sempra Energy (SRE), AutoZone (AZO), Agilent Technologies (A), Ross Stores Inc. (ROST), HP Inc. (HPQ), Rivian Automotive (RIVN), First Solar (FSLR), J.M. Smucker Company (SJM), and Norwegian Cruise Line Holdings (NCLH) report earnings
- Wholesale Inventories (Jan)
- Retail Inventories (Jan)
- S&P Case-Shiller National Home Price Index (Dec)
- Freddie Mac House Price Index (Dec)
- CB Consumer Confidence Index (Feb)
- Richmond Fed Manufacturing Index (Feb)
- Chicago Purchasing Managers’ Index (PMI) (Feb)
Wednesday, March 1
- Salesforce (CRM), Royal Bank of Canada (RY), Lowe’s Companies (LOW), Snowflake Inc. (SNOW), Woodside Energy Group (WDS), Dollar Tree (DLTR), Veeva Systems Inc. (VEEV), NIO Inc. (NIO), and Okta Inc. (OKTA) report earnings
- ISM Manufacturing PMI (Feb)
- S&P Global Manufacturing PMI (Feb)
- Construction Spending (Jan)
Thursday, March 2
- Broadcom (AVGO), Costco Wholesale Corporation (COST), Toronto Dominion Bank (TD), Anheuser-Busch InBev (BUD), Canadian Natural Resources Ltd. (CNQ), Marvell Technology (MRVL), Kroger Company (KR), Dell Technologies (DELL), Hormel Foods Corp. (HRL), Best Buy (BBY), and Nordstrom (JWN) report earnings
Friday, March 3
- S&P Global Composite PMI - Final Reading (Feb)
- ISM Non-Manufacturing/Services PMI (Feb)
- Total Vehicle Sales (Feb)