Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

How Will The Markets Cope With The Stress Of Inauguration Day?

By Spreadex (Connor Campbell)Market OverviewJan 17, 2021 06:38
uk.investing.com/analysis/how-will-the-markets-cope-with-the-stress-of-inauguration-day-200452410
How Will The Markets Cope With The Stress Of Inauguration Day?
By Spreadex (Connor Campbell)   |  Jan 17, 2021 06:38
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

It is inauguration week – but what will that mean for the markets amidst political tensions and covid-19 fears?

US
This might be the most fraught inauguration in living memory – and that’s saying something given Trump was crowned President 4 years ago to the day.

After the riot on Capitol Hill, and the subsequent (second) impeachment of Trump, the Joe Biden administration is immediately going to be dealing with the Senate trial of the gaudy billionaire, as well as trying to implement its covid-19 stimulus package.

For the markets, attention will be paid to the activity surrounding the inauguration, namely how out of hand the predicted reaction is from Trump’s supporters. Then it will be a case of how quickly Biden and co. can get to work on enacting their $1.9 trillion pandemic relief plans.

Meanwhile the biggest question around Trump’s impeachment is whether or not it will lead to a vote on him being disqualified from running for office in the future. It’s not necessarily the most pressing matter for investors, but there may be some relief if such an agent of chaos was wholesale removed from the political sphere. Again, however, the outcome of this process could lead to further domestic instability, something that the markets will be warily keeping an eye on.

Between Martin Luther King Day on Monday, and the inauguration on Wednesday, the US doesn’t have a lot to offer data-wise. That changes on Thursday, with the usual jobless claims reading – which is in danger of hitting 1 million for the first time since the end of August – accompanied by the Philly Fed manufacturing index, housing starts and building permits.

Friday then sees the flash manufacturing and services PMIs for January, which will give investors some indication of how badly the US economy caught a case of the post-Christmas blues.

It’s also a big week for corporate earnings, including the release of Netflix’s fourth quarter figures. After disappointing on subscriber growth in Q3, the pressure is on the global streaming service. Analysts are expecting the net addition of 5.9 million subscribers worldwide – compared to 2.2 million in the third quarter – alongside $6.6 billion in revenue and profits of $1.38 per share.

Joining Netflix (NASDAQ:NFLX) on Tuesday are Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC) and Halliburton (NYSE:HAL), followed on Wednesday by Morgan Stanley (NYSE:MS) and Procter & Gamble (NYSE:PG), and on Thursday by IBM (NYSE:IBM), Intel (NASDAQ:INTC) and Costco (NASDAQ:COST).

UK
Without American guidance on Monday, the FTSE’s start to the week may well be determined by the state of the Chinese data it’ll wake up to. Of the many figures released pre-open, the most important will be the Q4 GDP reading – expected to rise from 4.9% in Q3 to 6.1% for October to December – alongside the latest retail sales number.

From there you’ve got the UK inflation reading on Wednesday, CBI industrial order expectations on Thursday, and the post-Christmas retail sales figures alongside the flash manufacturing and services PMIs on Friday.

On the corporate side of things, it’s mainly retailers and miners. Rio Tinto (LON:RIO) and Premier Foods (LON:PFD) report on Tuesday, with Antofagasta (LON:ANTO), BHP Group (LON:BHPB), Burberry (LON:BRBY), WH Smith (LON:SMWH) and JD Wetherspoon (LON:JDW) on Wednesday, and Computacenter (LON:CCC) and Record (LON:RECL) on Friday.

One also can’t discount the impact of covid-19 headlines on the pound and FTSE alike, especially when the UK is in the midst of record high daily deaths and the threat of even tighter restrictions.

Eurozone
Thursday’s first ECB meeting of 2021 is the Eurozone highlight this week, investors keen to assess how the central bank is feeling in the New Year.

Before that there’s the ZEW economic sentiment and current account figure on Tuesday, and region-wide inflation numbers on Wednesday. Thursday has the ECB conference joined by consumer confidence data, while on Friday there’s the flash manufacturing and services PMIs for Germany, France and the Eurozone as a whole.

"Disclaimer: Spreadex provides an execution only service and the comments above do not constitute (or should not be construed as constituting) investment advice or recommendations, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any person placing trades based on their interpretations of the above comments does so entirely at their own risk. Spreadex Ltd is a financial and sports spread betting and sports fixed odds betting firm, which specialises in the personal service and credit area. Founded in 1999, Spreadex is recognised as one of the longest established spread betting firms in the industry with a strong reputation for its high level of customer service and account management.

In relation to spread betting, Spreadex Ltd is authorised and regulated by the Financial Conduct Authority. Spread betting carries a high level of risk to your capital and can result in losses larger than your initial stake/deposit. It may not be suitable for everyone, so please ensure you fully understand the risks involved."

Original Post

How Will The Markets Cope With The Stress Of Inauguration Day?
 

Related Articles

David Madden
Wall Street Rallies On Falling PPI   By David Madden - Aug 11, 2022

The fall in US producer price index (PPI) triggered a fresh round of buying on Wall Street and the S&P 500 has set a new three-month high. The PPI reading cooled to 9.8%, from...

How Will The Markets Cope With The Stress Of Inauguration Day?

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email