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After a week that was dominated by geopolitical fears, there will be an ongoing degree of anxiety for traders given the unpredictability of Donald Trump and Kim Jong-un

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Calamatta Cuschieri
14 August 2017, 11:55am
A return of the fundamentals, with bearish investors slowly coming out of hibernation
A return of the fundamentals, with bearish investors slowly coming out of hibernation
After a week that was dominated by geopolitical fears, with Donald Trump stating that military solutions are “locked and loaded” should North Korea “act unwisely”, there will be an ongoing degree of anxiety for traders given the unpredictability of Donald Trump and Kim Jong-un. However, this week sees a return of the fundamentals, with bearish investors slowly coming out of hibernation as money began their transit into funds that aim to profit when markets dive.  

In Europe, the second quarter GDP numbers are released. Expectations for Germany and Italy to show quarterly growth, with Italy recording a faster growth in July, while a slowdown was seen in Germany.

In the UK, the focus is on labour market and wage data, alongside inflation numbers, further guidance on consumption trends and future monetary policy. According to the latest PMI data, overall price pressures picked up in July together with an increase in the rate of job creation. These UK figures may as well influence the timing of the first rate hike by the Bank of England.

Meanwhile, the US will report their retail sales, awaiting clues as to whether the recent signs of strain on the consumer have continued into the second half of the year. One must also eye the recent upside in the non-farm payrolls, which surprised the markets with hopes of an increase in growth momentum in the economy.  Other key highlights from the US is the Federal Open Market Committee (FOMC) minutes that will keep the dollar in focus amid tentative signs of a revival.

China’s attention will be on investment, retail sales and industrial production. Data showed that China’s economy started on firm grounds, which was led by a pick-up in manufacturing activity.

Corporates

On the corporate front, markets are keeping an eye for a host of high street names from the US, with Gap, Wal-Mart, Home Depot, Urban Outfitters, Staples, and Target all reporting their latest earnings figures. The FTSE 100 also has a whole host of big names releasing data, with the likes of Admiral, Balfour Beatty, Kingfisher, and Rank Group stepping up to the plate.

Disclaimer:

This article was issued by Rodrick Duca, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.

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