5 Developments That Must Be Monitored This Week
This week, we have compiled 5 developments that should be monitored for you. Here are the developments that will affect the direction of the markets in the new week ...
This week the US presidential elections will enter the last week. In this timing, the financial stimulus package is expected to be further ignored. Also, this week will be a week where we will focus on US and Eurozone third quarter GDP data.
Let's take a closer look at the aforementioned developments:
- Company Reports
170 companies are expected to submit earnings reports this week. Of course, among these 170 companies, the most striking ones are the technology giants. Microsoft (NASDAQ: MSFT) on Tuesday and Apple (NASDAQ: AAPL), Facebook, Alphabet (NASDAQ: GOOGL), Amazon (NASDAQ: AMZN) and Twitter will submit reports on Thursday.
- Markets Before the US Presidential Election
One week left for the US Presidential election to be held on November 3. Stock markets will focus on Joe Biden's trading this week.
Especially in recent polls,
Joe Biden has achieved a considerable advantage over US President Donald Trump. These developments brought to mind the possibility that clean energy, circular stocks and hemp companies could be supported.
On the other hand, it is said that if Biden wins the victory and the Democrats win the US Senate, the idea of facing high corporate taxes on traditional energy companies could boost technology shares.
Analysts say that if
Trump wins the elections, currencies such as the Mexican peso and Russian ruble could be hit and the US dollar could be supported.
- Incentive Package Uncertainty in the USA
In the USA, uncertainties regarding the stimulus package expected to be presented due to the Coronavirus (Covid-19) epidemic started to make itself felt even more. The prevailing opinion is that the incentive package issue will be thrown aside, especially one week before the elections. Due to these concerns, it seems that this week the debate between the White House, Republicans and Democrats will intensify and determine the direction of the markets.
In a statement Friday, US House Speaker Nancy Pelosi stated that it is still possible to hold another round of financial incentives talks before the election, but that this depends on President Trump's action.
On the other hand, Senator Majority Leader Mitch McConnell, a senior Republican in Congress, is not in favor of bringing a big bill to the Senate before the election.
In light of all these developments, the possibility of additional financial incentives seems strong due to the increase in the number of cases and the decrease in unemployment benefits.
- US GDP Data
One of the most important data of the week will be the third quarter preliminary GDP figures, which are expected to be released on Thursday. According to market expectations, a 31.9 percent recovery can be seen after the 31.5 percent decline in the second quarter due to the epidemic.
However, the strong uncertainty about the incentive package and the increasing number of cases with the arrival of winter weaken this possibility.
In addition, Thursday's jobless claims data will be watched closely as an indicator of recovery efforts in the markets.
- European Central Bank (ECB) Meeting
The euro zone, which will release its third quarter report on Friday, predicts a strong recovery. However, Friday's PMI data showed that the rapid second wave in the outbreak revealed a double dip recession expectation and proved that the economic recovery started to decline in the last quarter.
While some reports are expected to show that inflation remained in the negative zone in October, unemployment is thought to increase slightly in September.
At the European Central Bank (ECB) meeting announced on Thursday, officials can discuss whether the prospect of a double-dip recession will generate a new need for incentives.
