Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
Summary: Equities were in for a rough ride yesterday as the megacap-heavy US Nasdaq 100 tumbled by as much as 3.5% before finding support. The bounce from session lows while Fed Chair Powell was out delivering testimony before Congress was impressive if unrelated to any message he delivered. Overnight, equities were weak again, as the Chinese CSI-300 has now suffered a major reversal.
What is our trading focus?
What is going on?
What are we watching next?
Earnings releases to watch this week – Home Depot delivered strong earnings yesterday with Q4 comp sales up 25% y/y vs est. 19%, but the company refrained from giving any 2021 guidance which disappointed the market. The US home improvement retailer also warned that rising lumber and logistics costs are pressuring operating margins. Square was already down 5% in the primary session and shares extended the loses by 6% in extended trading as the Q4 earnings release disappointed investors. Today the key focus is on Booking and Nvidia earnings.
Economic Calendar Highlights for today (times GMT)
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