Futures on the S&P500 (-0.3%) and the Nasdaq-100 (-0.4%) predict a fairly lackluster opening this Monday, against a backdrop of geopolitical concerns and pending meetings economic later in the week.
‘Of course, sentiment is still somewhat affected by the ongoing tensions in the Middle East, on this tragic first anniversary of the outbreak of war between Israel and Gaza,’ said Michael Brown senior, research strategist at Pepperstone.
‘Participants remain on alert, awaiting a potential and probable Israeli response to the Iranian missile barrage launched last week, with crude oil continuing to command a significant geopolitical risk premium,’ he continues.
The Middle East crisis should focus attention all the more as no American data is expected this Monday, and we will have to wait until Thursday to know the main statistic of the week, namely the price index consumption.
‘The Fed has changed priorities. It is no longer a question of fighting inflation by maintaining a restrictive policy, but of avoiding a cooling of the labor market by reducing key rates,’ Oddo BHF emphasizes.
‘There is no debate on the direction of the policy (easing), but on the speed of the adjustment’, specifies the research office, estimating that the minutes of the last FOMC (to be published on Wednesday) ‘will give maybe some clarification on this point’.
Finally, the week will be marked by the start of the third quarter results season, including publications from the food group PepsiCo, the pharmacy chain Walgreen Boots, and especially the bank JPMorgan Chase.
For the moment, Chevron has announced an agreement to sell some of its assets located in the Canadian province of Alberta, to Canadian Natural Resources Ltd, for 6.5 billion US dollars, as part of its plans optimization of its portfolio.
Jefferies downgraded its recommendation on Apple from ‘buy’ to ‘hold’ with a price target raised from 205 to 212.92 dollars, estimating in particular that the hardware of smartphones will ‘need to be reworked before being able to a serious AI’.
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