Vidya Ranganathan looks ahead to European and global markets.
Thursday’s corporate calendar features a slew of earnings reports that shed further light on the health of consumers around the world, including U.S. retailers Walmart (WMT.N), Bath & Body Works and Macy’s (MN) reporting results has been done.
Expectations for Walmart are rising after peer Target (TGT.N) soared by nearly a fifth on Wednesday on better-than-consensus holiday forecasts and a brighter outlook for the supply chain.
Walmart is expected to increase third-quarter sales on strong demand for cheap groceries and household essentials for Americans struggling with inflation, and beyond that, investors are looking at the company’s holiday outlook. We are paying close attention to the company’s comments regarding margin pressure.
This tricky inflation trend shows that Bath & Body Works had a less-than-strong third quarter, and that customers cut back on non-essential items like more expensive home fragrances and personal care products. There is a high possibility.
Chinese e-commerce giant Alibaba Group will set the tone early in the day as it releases financial results and updates on its reorganization, giving investors their first look at new CEO Eddie Wu.
A number of central bankers, including ECB President Lagarde, spoke at various events on Thursday, with a growing consensus that the policy tightening cycle for major central banks is over, and that belief is based on recent inflation reports and other This was further strengthened by the indicators.
Figures on Wednesday showed US producer prices fell at the fastest pace since April 2020 and UK consumer inflation fell below all expectations. Oil prices are currently down more than 10% year-on-year.
According to CME, U.S. producer price data also reinforces the disinflationary theme, with this week’s data indicating that Federal Reserve Chairman Jerome Powell has set a target rate for the federal funds rate of 5.25% to 5.50% at the end of next month’s policy meeting. He said he was confident that it would remain the same. FedWatch Tool.
Meanwhile, in Asia, Japan’s exports are struggling due to sluggish shipments of chips and steel to China.
China’s October figures show that although industrial production and retail sales continue to recover, the real estate sector remains weak and remains a drag on the economy.
But supporting mainland markets is the promise of greater stimulus, with the central bank injecting large amounts of cash through medium-term policy loans this week.
Markets did not particularly react to the news, but the first meeting in a year between US President Joe Biden and Chinese President Xi Jinping on Wednesday saw the two leaders resume military-to-military contacts and cooperation. Investors also heard that an agreement had been reached. Regarding anti-drug policies.
Key developments that may impact the market on Thursday:
Data: U.S. weekly new unemployment insurance claims, October industrial production, U.S. import and export prices
Speakers: Randall Krosner of the Bank of England, Christine Lagarde and Luis de Guindos of the ECB, Loretta Mester, John Williams and Michael Barr of the Federal Reserve.
Event: APEC meeting of world leaders in San Francisco.
Revenue: Walmart, Applied Materials, Macy’s, Bath & Body Works, Gap, Siemens, SQM
Government bond auctions: 3-year, 4-year, 5-year, 13-year, 30-year French government bonds resume
Written by Vidya Ranganathan.Editing: Jacqueline Wong
Our standards: Thomson Reuters Trust Principles.