Independent Investor News and Updates

Week Ahead: Wall Street is Rocking after Some Hefty Falls

Author: Phil Evans / In News

Wall Street is rocking after some hefty falls for the major indices, but there could be succour in the form of earnings as the Q1 season gets underway on Friday. Earnings Season Wall Street is rocking after some hefty falls for the major indices, but there could be succour in the form of earnings as the Q1 season gets underway on Friday. Citigroup and Wells Fargo are the first big banks to report their first quarter results. The question facing investors is whether a strong earnings season can halt the stock market slide. While equities have been hit by worries about a trade war and various tech sector trouble, there is yet hope that Q1 earnings will deliver a fillip as the impact of tax effects and stronger economic growth are felt on bottom lines. Investors may also be optimistic that corporate tax cuts lead to more share buybacks and […]

Week Ahead: Big Economic Releases

Author: Phil Evans / In News

Spotify IPO, Eurozone inflation and US nonfarm payrolls are the big events for markets in the coming days. Spotify IPO The unconventional initial public offering (IPO) of Swedish streaming service Spotify (SPOT) on April 3rd is the headline event this week. Unlike traditional market debuts, the company is using a direct listing that sidesteps the usual investor roadshows and team of investment bankers underwriting the offering. It is expected to be the biggest launch since the Snap IPO last year and comes at a time when the number of tech IPOs as a proportion of total US listings is at a two-decade low. Many hope that a successful IPO could encourage other unicorns like Airbnb and Uber to list publicly, having so far gone down the private funding route. Ahead of the IPO, management delivered a bullish assessment of future growth. Guidance revealed last week shows they expect sales to […]

Week Ahead: Big Economic Releases

Author: Phil Evans / In News

The Fed is all but certain to raise rates, but will policymakers revise up their forecasts for the number of hikes in 2018? Federal Reserve The US Federal Reserve is widely anticipated to raise interest rates again this week, the first of three or even four hikes forecast in 2018. Inflation has picked up and minutes from the January FOMC meeting revealed more bullishness on the US economy. Jay Powell, who will preside over the meeting as chair for the first time, told Congress that economic conditions have picked up since the end of last year. With a hike all but a done deal, the focus for traders will be fresh economic projections and the so-called dot plot, which details where policymakers expect rates to be over the medium term. If consensus points to four hikes in 2018 this could unnerve markets and support the USD. However, there may yet […]

Week Ahead: Your Quick Glance

Author: Phil Evans / In News

Italian elections and an important European Central Bank could create volatility for the euro, while Brexit talks are sure to impact sterling. Italian Elections A key election but this does not appear to pose the same kind of risk as was perceived before the constitutional referendum of December 2016. Italians go to the polls on Sunday (March 4th) with the results expected to be known by early Monday when European markets open. Polls close at 10pm (London time) with exit polls released immediately. Although often quite reliable, in 2013 they suggested much stronger support for the centre-left coalition than actually was the case. A new voting system incorporating dual elements of proportional representation and first-past-the-post makes calling this one harder than in the past. So far the market reaction has been fairly limited – while the result is uncertain this does not appear to be a binary choice between pro-European […]

Week Ahead: Eurozone Inflation, FOMC Minutes and FTSE Results in Focus

Author: Phil Evans / In News

Eurozone final CPI inflation for January will be among the main events in the forex markets as traders look to see whether the data supports the hawks or the doves on the European Central Bank’s governing council. Eurozone Inflation On Friday, Eurozone final CPI inflation for January will be among the main events in the forex markets as traders look to see whether the data supports the hawks or the doves on the European Central Bank’s governing council. Flash estimates showed prices rose by 1.3% from the same month in 2017, in line with expectations but it was the slowest annual pace since July and came after price growth cooled in December. The more closely-watched core CPI rate, which strips out volatile components such as energy and food, climbed to 1% from 0.9% in December. The data gives the ECB pause for thought: does it need to unwind stimulus as […]