April 26 - A look at the day ahead from Danilo Masoni.
There will be plenty to chew on this week, with the Fed meeting
featuring as main attraction alongside top-tier macro data and
earnings reports from almost 300 U.S. and European firms.
While Canada's hawkish surprise last week has put markets on
high alert for signs the U.S. central bank might be considering
tapering of bond purchases, most reckon it will stick for now
with its ultra-easy policy stance.
That will be crucial for market sentiment which is torn
between buoyant macro data and company results in much of the
developed world and the explosion in COVID-19 cases across India
and the rest of Asia.
So while the dollar has slipped to an eight-week low, equity
investors seem content to stay on the sidelines with both
European and U.S. futures trading around flat. Both indexes fell
last week, snapping a multi-week winning streak.
Eyes today are on Germany's IFO survey which comes on the
heels of robust manufacturing figures; later this week, expect
Q1 GDP releases in the euro zone, Germany and the United States.
Bond yields are inching higher meanwhile; German Bunds may
feel the heat from opinion polls showing the Greens overtaking
Merkel's conservative bloc before September elections.
On the corporate radar, the main event is Telsa's earnings
report with expectations of a 72 increase in revenue.
In Europe, Philips shares could rise 2% after a hefty jump
in quarterly profits, while steelmaker SSAB's Q1 profit beat
means it could open 1% to 5% higher. On the M&A front, Nestle is
in talks to buy nutritional supplement maker The Bountiful
Key developments that should provide more direction to
markets on Monday:
* BIS, BOE and ECB conference on the post-pandemic
Fabio Panetta to speak
* German IFO
* Kazakhstan central bank meeting
* U.S. durable goods
* U.S. 2 year and 5 year note auctions
* U.S. earnings: Tesla
* European earnings: Galp, Philips, Kuhne and Nagel
(Reporting by Danilo Masoni)