Company / Analytics

Analytics, 14 August 2023

What will drive the markets this week?

Friday saw declines in both the S&P 500 and the Nasdaq Composite, marking their second consecutive week of losses. The cause was attributed to unexpectedly higher U.S. producer prices data, which pushed Treasury yields upward and led to a downturn in megacap growth stocks sensitive to interest rate changes. However, the Dow Jones Industrial Average managed to close the day with gains, concluding the week with a 0.6% increase.

In the European market, apprehensions about prolonged global interest rate elevation took center stage, resulting in a drop in European shares. Conversely, UBS shares experienced a surge after the Swiss bank terminated a state guarantee linked to its acquisition of Credit Suisse. The pan-European STOXX 600 index slid by 1.1%, predominantly driven by declines in technology and real estate stocks, which each decreased by around 2.1%.

The Asia-Pacific markets displayed mixed performance on Friday, influenced by lower-than-anticipated U.S. inflation figures. This outcome bolstered optimism that markets might witness a gradual resolution in the ongoing battle against inflation.

This upcoming week is poised to be one of the final active periods of the current earnings season. Noteworthy retailers such as Walmart, Home Depot, and Target are scheduled to release their reports.

On Tuesday, the Census Bureau is set to unveil July’s national retail sales data, shedding light on the state of consumer spending during the past month. Wednesday will see the release of minutes from the latest Federal Open Market Committee (FOMC) meeting, potentially providing insights into the future course of monetary policy.

Housing market updates will also feature prominently, including data on building permits, housing starts for July, and the National Association of Home Builders’ Housing Market Index for August. Lastly, inflation and GDP figures will be disclosed for the United Kingdom, the eurozone, and Japan.

Events expected to move the markets this week

Monday, August 14

Tuesday, August 15

Wednesday, August 16

Thursday, August 17

Friday, August 18

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