Last week’s market performance was a mix of an optimistic US economy against the gloomy Asian and European markets. A lot of economic issues were setting a volatile market for most equity investments despite their advancing figures brought about by improvements in the US economy. The Greek bailout is yet to be confirmed, whether the IMF would be able to provide the amount the country needs. Here is an overview of what to expect for the coming trading week.
The US Crude Oil Inventory report would be released on Wednesday. Last week’s report dropped figures due to the output cut from refineries and the low demand for gasoline. Analysts forecasted, though, that in the coming weeks, demand for crude oil products would improve. Be it noted that in the last four weeks, there was an accumulated 8.43 million barrels per day decline in gasoline demand.
The Federal Reserve Minutes of Meeting would also be released on Wednesday. The report would entail the approval of interest rate hikes last December 2016, after the optimistic result of Trump’s win on the country’s economy. Economists purported that the economy would be able to achieve growth of up to 2.1% against the past year estimate of only 2%. Trump’s promise to spend more on infrastructure is believed to be a major contributory factor in improving the country’s economic growth.
Unemployment claims remain below the 300,000 mark, with a predicted figure of 242,000 registering the coming week, as opposed to 239,000 last. The unemployment report marks another positive business sentiment among investors, projecting a healthy economy.
The GDP data for the UK would be released on Wednesday with an economic forecast figure of 0.6% for Q4 2016. The Q3 GDP growth was 0.5%. There are several reasons for this growth, the main one of which is the country’s improved consumer spending. On the contrary, the construction industry is weak and does not add further variable for a strong GDP figure. 2017 is predicted to be slow in terms of economic growth due to higher living costs and a decline in various business investments.
The Eurozone Consumer Confidence would be released Monday with an improvement of -4.7 to -4.3. On the other hand, the Inflation report to be released on Wednesday is predicted to be 1.2% for January 2017 against 1.1% last December 2016.
This coming Thursday in Australia, RBA Governor Philip Lowe is scheduled to testify in the House of Representatives Standing Committee on Economics. The testimony would include his stance on more spending to be focused on infrastructure. This would result in solutions for the country’s increasing population. Aside from that, he is against the US President’s barriers on trade policies, which the country mostly benefits from. Australia is on an open international trading system. He believes the country would be able to attain a 3% economic growth rate for the coming years. The mining industry, though, could see a downtrend in the coming months.
Despite a volatile Asian market being affected by Trump’s trade policy, equity investment could still provide a reasonable opportunity to put money into. Volatility rate is low in Asia. Bank policies may still continue per country. Meanwhile, China is starting to tighten its fiscal measures amidst rising debts. According to many analysts, China is on the verge of an economic issue: its rising debt is overshadowing the slow GDP growth of the country. However, the effect would still not be realized until the full effectivity of US trade policies.
The global marketplace seems to again register a volatile week for investors who should decide correctly on their investment plan. Stay wise, invest diversely, and keep eye on the long-term game.