Rabobank analysts point out that the firmer oil stocks helped to support the S&P 500 yesterday in a holiday thinned session, but a tone of apprehension was still evident ahead of the week’s slew of corporate earnings.
Key Quotes
“About one third of US companies are due to report this week including several major tech firms. Analysts have been concerned that slower world growth, trade wars and the tapering of support from Trump’s tax cuts could lead to a more difficult trading environment for corporate America in 2018.”
“The release of advance US Q1 GDP on Friday will be one of the key releases of the week. The data, which will incorporate the period of the government shutdown, are expected to show annualised quarterly growth in the region of 2.2%. The release is likely to set the stage for the May 1 FOMC meeting.”
“The Fed’s policy meeting follows those from the BoJ, BoC, Riksbank and central Banks of Russia, Turkey and Indonesia this week.”
“Germany’s IFO release tomorrow will provide the latest reading on what has been a run of disappointing news regarding European’s largest economy. Last week, the reading of German manufacturing PMI registered 44.5, from 58.1 a year ago.”
“Trade is set to remain a key theme of the coming days. EU leaders will meet with Japan’s PM Abe on Thursday before he travels to the US for a summit with Trump.”
“As the UK parliament regroups after its Easter recess, the reprieve from Brexit related rhetoric can be expected to come to an end.”
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