Big week with central bank, OPEC decisions and earnings [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

There is a sense of hope in the market this Monday morning after Friday’s PCE data boosted the expectation that the Federal Reserve (Fed) is getting very close to signaling its first rate cut in September. The US yields and the dollar are under pressure this Monday morning, the euro and sterling are better bid, while tension among the Japanese yen bulls mount ahead of the Bank of Japan (BoJ) decision; the BoJ is expected to announce QT and lower rates this week.

In equities, Friday was a better day for the Big Tech stocks in the US. Roundhill’s Magnificent Seven ETF rebounded 1%. But overall, last week saw accelerated rotation flows as capital moved out of Big Tech and into smaller and non-tech sectors of the market, driven by rising Fed cut bets and disappointing earnings from Google and Tesla. 4 of Magnificent Seven companies : Microsoft, Meta, Apple and Amazon are due to announce their Q2 earnings this week. Their results should not only meet but also beat the sky-high expectations.

Elsewhere, crude oil is better bid this morning on mounting geopolitical tensions in the Middle East. OPEC+ will meet this and could announce a delay for scaling back of production cuts.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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