As markets get back underway after Easter, it’s a relatively quiet week for major economic announcements but that doesn’t mean it’s going to be a boring one.
Firstly, US earnings season continues with heavyweights such as Microsoft, Facebook and Amazon due to reveal their latest results. Aerospace company Boeing is due to announce its earnings ahead of the opening bell on Wednesday. These are likely to be very closely watched following the two fatal accidents in the past year involving its 737 Max plane which was subsequently grounded. The share price has arguably not fallen as much as some may have expected – investors will be looking for more insight as to the impact these tragic events are having on Boeing’s business.
Oil has started the week as it has many others lately – by pushing higher. A barrel of US crude oil is $66 this morning in London – its best level since October last year. The oil price has risen a frankly staggering 55% in the past four months and for now at least buyers continue to be happy to step in on any weakness. Plenty of fingers have been burnt trying to call the top in the oil price – some traders may well take the view that it is over-stretched at current levels, but for the year so far there was no arguing with the momentum which has been firmly on the side of the bulls.
It has been a quieter time in the world of foreign exchange with both the euro and the pound a little becalmed last week. But today sees the return of UK politicians from their Easter holidays and once again the Brexit discussion will be reignited. Expect volatility to pick up for the pound – for now, versus the US dollar, the 1.29 area has been a good floor so some traders may be expecting a bounce for sterling this week.
*This is market commentary information, therefore it shall not be regarded as investment research or investment advice. Also note that past performance is not reliable indicator for the future.