The US stock market crashed last week. It reacted to the Fed’s interest rate hike by 75 basis points on Wednesday. S&P Future Contract fell by 6.1%, and Dow Jones by 5.2%. Fears of global recession have also driven commodity prices down, with WTI Crude Oil going down to $77.53 per barrel, the lowest since January.
SimpleFX margin traders are happy as the volatility is rising. There are many events you should take a closer look at this week.
S&P Global will release its Case-Shiller National Home Price Index on Tuesday, showing the monthly change in housing prices for July.
On Wednesday at noon, UTC Germany releases the preliminary inflation rate for September. The forecast is 9.4%, and the last numbers were 7.9%, and the forecast is 9.4%. The prices are spreading up in Germany.
France is going to reveal its inflation data on Friday at 6:45 UTC. Here, both expectations from a previous release are 5.9%. Italy and the ECB will do the same at 9:00 UTC. Italy’s forecast is 8.7%, EuroZone’s forecast is 4.7%, and the previous data is 4.3%.
The final reading for second-quarter US GDP growth is also expected on Thursday at 12:30. The forecast is -0.6, and the last is -1.6%.
On Thursday, Nike will report its earnings, which we discuss below.
Lastly, it’s worth noting that next week is the final week of the third quarter, and Friday is the last trading day of September— which has been historically known as the worst month for stocks. Will October be more bullish?
GBPUSD
The pound sterling has been at the weakest point against the USD since 1972, the first time in the current monetary system. There’s no technical support from the pair. On Friday, the pound sterling crashed by 3.64%. On Monday, it hit 1.03%. The UK economy is on the brink of recession, and the USD is sucking all capital in uncertain times.
DAX40
Germans are preparing themselves for a brutal winter. After shutting down its nuclear program, the EU’s largest economy depends on Russian commodities. During the critical data release, the war and sanctions complicated things as the producer price index galloped. Trade DAX40 this week.
Nike
Is the footwear company underpriced at the moment? Nike Inc. will report fiscal first-quarter results on Thursday after the market closes. The Q1 earnings-per-share are expected to drop from 95 cents to 90 cents, and 2022 earnings combined from S3.70 to $3.60. Barclays downgraded Nike ahead of the earnings, while RBC advised to “buy,” predicting a 27% surge.
