Apart from a brief positive wind coming from the trade dispute arena, namely from the scheduled trip to China by the U.S Trade Representative Robert Lighthizer, investors are now focused on two fronts, the earnings season and the Central Banks power play. For tomorrow there is a lot of expectations regarding what will Draghi announce, a rate cut or a new wave of quantitative easing with asset buying? Next week, the FED will most likely reduce its interest rate by 0.25%, anything else could be interpreted as too hawkish (no cut), or too dovish (0.5%), both potential negative scenarios due to its implications.
As for the earnings picture today was a bad day for the industrial sector, in contrast to the previous session. Disappointing reports from two heavyweights, Caterpillar and Boeing, sent the Dow Jones to a negative performance right from the opening and stayed there until lunch, while both the Nasdaq and the S&P500 managed to shake off the initial selling pressure, but barely. As a last idea, be careful tomorrow at the time of the ECB announcement, especially in the EUR/USD.
Photo by Imelda P.
