The week is going to be an eventful one for investors and market participants with bearish and bullish movements they could take advantage of.
Here are the top 4 things we expect to move financial markets this week:
More Earnings Report: Earnings reports for the last quarter of 2020 will continue this week. Market analysts expect the earnings for S&P 500 companies to decline 9.5% in the final quarter but are expected to rebound in 2021 with a 16.4% projected gain. Investors are anxious to see whether the earning results will meet the market’s expectations for a rebound in 2021.
Biden’s Inauguration as the next POTUS: Joe Biden will be inaugurated as the 46th president of the United States on Wednesday. Taking over the leadership of a country that is highly stricken by the pandemic and is currently facing deep socio-economic divisions, the controversies and uncertainties of the outcome of Biden’s administration will spill over to the market and investors sentiments.
PMI Economic Data Release: The first PMI (Purchasing Managers Index) data of 2021 from the U.S, Euro Zone, UK and Japan are set to be released on Friday. PMI provides information about current business conditions in a country. Research analyst expects it to be weaker due to the surge in COVID cases and the imposition of fresh restrictions.
European Central Bank’s Meeting: The European Central Bank is to hold its first meeting for the year on Thursday. The major issue to be discussed at this meeting is the economic outlook for 2021- in the light of the surge in COVID cases, prolonged and the relatively slow pace in the distribution of the COVID Vaccine which investors feel will harm the economy. Your trading position determines whether you gain or lose in financial markets. Thus, let this news guide your trading/investing decisions this week.
Have a productive week everyone.
