The global markets closed out last week with a cloud of uncertainty surrounding them. Whether this anxiety will continue into the upcoming trading week is yet to be seen, but there is an abundance of signs that point to more uncertainty on the horizon.
The continuing spread of the deadly coronavirus has put the entire world on edge. With much of China under mandatory quarantine, their economy is slowing down and affecting the manufacturing distribution lines throughout the globe.
In addition to the coronavirus concerns, there are signals that some of the world’s most important economies could dive into a recession. As the third-largest economy in the world, Japan’s output was reduced by 1.6% in the fourth quarter of 2019. Germany is also struggling because of the nation’s mounting struggle on the manufacturing side of the industry.
Other countries that are showing indicators of a slow-down include China, India, Hong Kong, and Singapore. Most experts point to the trade conflict between China and the US as a prime reason for the ongoing global issues. However, now that the conflict has been eased, it is the fears of the coronavirus that could potentially cause the most havoc.
Also on the radar this week will be US President Donald Trump’s visit to India. While it has not received the media attention of the conflict with China, there are increasing trade tensions happening between the US and India. As one of the world’s most important emerging economies, investors will be looking closely at how Trump interacts with India Prime Minister Narendra Modi.
The big news on Monday will be the report on Germany’s business climate. On Tuesday, all eyes will be on the news from the US consumer confidence report while Wednesday brings data on the US new home sales. The domestic personal income and spending report is due on Friday. Companies set to release earnings reports this week include Home Depot (HD), Macy’s (M), Lowe’s (LOW), Papa John’s (PZZA), Wendy’s (WEN), Hostess Brands (TWNK), L Brands (LB), Marriott (MAR), Anheuser-Busch InBev (BUD), Best Buy (BBY), and Dell (DELL).
Dil Bole Oberoi
