Federal Reserve and earnings season draw investor attention

(ABM FN) The earnings season will really get going next week as the Federal Reserve makes a new interest rate decision and the macro agenda is also quite full.

On Monday we start with a slew of composite purchasing manager indices from European countries as well as Japan and the United States.

A day later, mainly leading indicators are on the agenda, in the form of business confidence in Germany and our own country, but also American consumer confidence. As always, this first figure comes from the Conference Board and a second comes from the University of Michigan on Friday. French consumer confidence is scheduled for Wednesday, German consumer confidence on Thursday and European consumer confidence on Friday.

Inflation and interest

Wednesday is all about the US central bank. The Federal Reserve is coming with a new interest rate decision and especially the accompanying comments will be listened to with the utmost attention. Now that the latest inflation figure has climbed to no less than 7 percent, policymakers are sounding more and more hawkish.

“We expect the FOMC to further anchor market expectations of a 25 basis point rate hike in March,” economists at Nomura Bank of Japan said in a preview.

The market is currently already expecting four rate hikes for this year and the entire buyback program should be completed in March. The Fed may already have a look into its cards about the future reduction of that gigantic balance sheet with purchased debt securities.

Another element, besides inflation, that the Federal Reserve looks to in shaping its policy is the labor market. The weekly aid applications will come out again on Thursday.

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A growth figure for the world’s largest economy is also scheduled for that day. On Friday we will close the week with French and Belgian economic growth, Belgian inflation as well as the European money supply. Personal income and spending in the US, including the core PCE inflation that is important to the Fed, will also be closely examined.

Company figures

The earnings season was already in full swing abroad last week, but next week the agenda will be really full.

Monday there are figures from Philips, Halliburton and IBM. On Tuesday, Remy Cointreau, 3M, American Express, General Electric, Johnson & Johnson, Lockheed Martin, Verizon, Microsoft and Texas Instruments open the books.

On Wednesday, we look toward Abbott Laboratories, AT&T, Boeing, Kimberly-Clark, Intel and Tesla.

Thursday will be very busy with results from Samsung, Deutsche Bank, SAP, easyJet, Comcast, Mastercard, McDonald’s, Sherwin-Williams, Nucor, Visa and Apple.

Friday there are still figures from Signify, UniCredit, Caterpillar, Colgate-Palmolive and Chevron.

The earnings season will also start in Belgium towards the end of the week. Investor in growth companies Quest for Growth will open its books on 2021 on Thursday. Friday there will be figures from WDP, KBC Ancora and Smartphoto.

Bron: ABM Financial News

From Beursplein 5, the editors of ABM Financial News keep a close eye on developments on the stock exchanges, and the Amsterdam stock exchange in particular. The information in this column is not intended as professional investment advice or as a recommendation to make certain investments.

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