Vtrade WEEK AHEAD (#29) Summary

Vtrade WEEK AHEAD (#29) Summary

1)    Trump meets Putin

President Trump readies for the meeting with his Russian counterpart Putin on 16^th July, and the agenda of the meeting is best known to the leaders themselves.

Trump expects to have nobody from the US delegation to be present during the meeting initial stage, also this worries that Mr. President may not bind to the US policy conventions or even get his advisors guidance during the meeting.

A changed stance on the Ukraine’s Crimean peninsula can completely upend U.S. foreign policy and its stated commitment to ally Ukraine, as well as its historic opposition to Russian territorial expansion.

2)    China announces GDP

One of the major economies and one who is greatly stressed due to on-going trade war with The US, is set to announce its GDP for its Quarter 2.

It is observed that the GDP may remain unchanged or very little low drift at 6.7% compared to its 6.8% growth rate as shown in its Quarter 1.

It is surprising that China one of the largest exporter country has escaped unscathed so far through the trade tariff turmoil that Mr. President has created for them and has not shown any major effects to its foreign trade sector, however it is to be watched how its reacts to an additional $200 Billion tariffs announced by the US.

3)    The highly important Chair of the US speaks

Jerome Powell, The Chairman, Federal Reserve, will be ready to face the House and Senate committee on the mid-year monetary policy testimony.

It is only a matter of little time and we may be aware of when and how much exactly the interest rates would increase.

4)    US Retail Sales

Expecting to have an overall increase of 0.4% after a 0.8% growth last month, the US retail Sales are and important indicator of whether or not the economic growth is getting stronger under the Trump administration.

Retail Sales figures directly relate with the consumer spending and this accounts for as much as 70% of the US economic growth.

5)    Crude Oil Momentum

Global Supply availabilities remain at the core of the fluctuations of Oil prices. Oil prices traded to a very good high during the months of June and early July due to Libyan supply issues and fears that US may push all Iranian oil buyers to stop imports November onwards, as US plans to reimpose sanctions on Iran.

A ray of hope to the ever-increasing prices came since Libya as expected starts its production thus adding about 850,000 barrel per day.

Also, as Saudi promised to raise output levels to make up for the supplies that reduced due to Libya, Venezuela & Iran, thus also adding to a possibility that Oil prices may stabilize in the week to come.

6)    Fundamentals to watch for

-       China amid all the current trade wars will open its Q2 GDP on Monday and analysts outlook of the current trade war effects on the economy

-       US Retail Sales data shall be announced on Monday

-       US Federal Reserve Chairman Jerome Powell will speak about the economy and monetary policies on Tuesday & Wednesday. His comments may show the way for how soon the next hike in interest rates take effect

-       UK announces its Average Earnings with/without bonuses on Tuesday

-       UK announces its Claimant Count Change on Tuesday

-       UK & European Union also announces its Consumer Price Index on Wednesday

7)    Major Companies Earnings Disclosure

-       Monday – BOA and Netflix

-       Tuesday – J&J, Goldman Sachs and United Health

-       Wednesday – IBM, American Express and Morgan Staley 

-       Thursday – Microsoft, The Traveler and Advanced Micro Devices

-       Friday – General Electric, Schlumberger and Honeywell

Disclaimer

This Interim Financial Results & News posts or updates includes forecasts, projections and other predictive statements that represent Vtrade's assumptions and expectations in light of currently available information. These forecasts, etc., are based on industry trends, circumstances involving companies and other factors, and they involve risks, variables and uncertainties. The Group’s actual performance results may differ from those projected in these Interim Financial Results. Consequently, no guarantee is presented or implied as to the accuracy of specific forecasts, projections or predictive statements contained herein.