Company / Analytics

Analytics, 07 August 2023

What will drive the markets this week?

Last week was wrapped up on Wall Street with a decline, prompted by reports highlighting a slowdown in U.S. labor market growth. This resulted in all three major indices witnessing weekly losses, causing investors to prepare for potential unfavorable developments.

In the European markets, a three-day selling spree came to an end as stocks stabilized. The momentum was driven by positive earnings and robust U.S. jobs data, which underscored the strength of the world’s largest economy. Despite concerns about the decelerating euro zone growth, the positive factors outweighed the uncertainties.

Across Asia-Pacific markets, there was a downturn as investor attention shifted to China’s upcoming inflation figures and trade balance for the week. While Hong Kong’s Hang Seng index experienced a minor uptick, mainland Chinese markets all closed in negative territory. The Shanghai Composite concluded with a 0.59% loss, finishing at 3,268.83, while the Shenzhen Component declined by 0.83%, closing at 11,145.03.

This week, we anticipate earnings reports from various companies, including Eli Lilly, UPS, The Walt Disney Company, Honda Motor Company, and Alibaba. The Labor Department is set to release its latest inflation readings, featuring the Consumer Price Index (CPI) on Thursday and the Producer Price Index (PPI) on Friday.

The New York Fed is scheduled to issue its quarterly Household Debt and Credit Report on Wednesday, offering insights into the financial well-being of U.S. households during the second quarter. Additionally, Friday will bring the preliminary August reading of the University of Michigan’s Consumer Sentiment Index (MCSI), alongside a GDP reading from the U.K.

Events expected to move the markets this week

Monday, August 7

Tuesday, August 8

Wednesday, August 9

Thursday, August 10

Friday, August 11

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