It is an important week that starts today on financial markets. The six largest companies in the U.S. stock market are scheduled to release their results. The Fed will make a monetary policy update. And there will be intense discussions about Joe Biden's capital gains tax proposal, which some say is stillborn. To complete the picture, add to that a few important macroeconomic indicators, the coronavirus and the continuing fascination with cryptocurrencies.
About a quarter of large companies have already announced their figures, which are overwhelmingly above expectations, in relatively large amplitudes compared to the average. It shows that analysts might have been a little cautious in their expectations, but also that the companies themselves were overly cautious. This has a double positive effect in the end.
The traction of the results should not weaken this week, if initial trends are confirmed. Especially since big names in the stock market are entering the fray. Tesla today, Microsoft and Alphabet tomorrow. Apple and Facebook on Wednesday. Amazon.com and Samsung on Thursday or Alibaba on Friday. In Europe, Novartis, HSBC, Sanofi, Royal Dutch Shell, Unilever, AstraZeneca or Total will also be in the game, but investors' eyes will be riveted on technology stocks, once again.
On the macroeconomic front, there is still a lot of discussion in the US about Joe Biden's tax plans, particularly the taxation of capital gains for the wealthiest taxpayers. The American president, who has been doing quite well since his arrival in the White House, will probably enter a tougher phase of his mandate. The U.S. central bank will be back in the game on Wednesday evening to give its monetary stance after its meeting on April 27 and 28. This will reopen the logorrhea on the duration of support programs, rates and inflation, in a context that has not changed much since the last time central bankers spoke. On the coronavirus front, India is overwhelmed while Europe is instead preparing to reopen the businesses most affected by the crisis.
Economic highlights of the day:
The Ifo business climate index for April in Germany and March durable goods orders in the U.S.
The ounce of gold stabilized around 1780 USD. In the oil market, WTI is down to USD 61.4 and Brent at USD 65.2. U.S. debt is yielding 1.57% over 10 years. Bitcoin rebounds to USD 53,790, after spending a while below USD 49,000. Copper has reached a record high since 2011 on the LME.
* Tesla, which will release its first quarter results after the close, is up in pre-market trading.
* U.S. health officials on Friday recommended immediate resumption of use of Johnson & Johnson's COVID-19 vaccine, saying the risk of serious cases of blood clots associated with low platelet counts was very low.
* Nestlé announced Monday that it is in discussions to acquire dietary supplement maker The Bountiful Company, which is majority owned by private equity firm KKR.
* Moderna's COVID-19 vaccine will be reviewed on April 30 by the World Health Organization for possible approval under the emergency procedure, a WHO spokesman told Reuters on Monday.