Breaking News! Big bank earnings, IEA report, Tesla prices – what’s moving markets? The financial world is in a frenzy as we enter the new quarterly earnings season. Investors are eagerly anticipating earnings reports from Citigroup, Wells Fargo, and JPMorgan Chase, which will kick off the season. The markets are seen to be marginally lower, with rising interest rates and concerns about the banks’ health creating stress. In addition, the International Energy Agency has released its monthly report on the oil market, which will add to the market’s already high tension.
The news of Warren Buffett’s increased interest in Japanese stocks has caused a sensation among Western investors, who have abandoned this region for many years. However, Japanese stocks have seen increased demand this year, with the Nikkei up over 9% year to date. Buffett’s investment in Japan’s five major trading houses and his potential for more local investment has added to the excitement.
U.S. futures have traded marginally lower as investors consolidate their positions, following the previous session’s strong gains. Furthermore, Tesla has cut the price of its Model 3 in Germany by about 4.5%, leading to speculation about the company’s future prospects. Meanwhile, Boeing has halted deliveries of some 737 MAXs due to a new supplier quality problem.
To add to the confusion, there is a deluge of U.S. economic data to study, including retail sales for March, industrial production, and the preliminary reading of the consumer sentiment index. With headlines reporting the lowest U.S. headline inflation rate in almost two years and minutes from the last Federal Reserve meeting talking about a “mild recession,” investors are nervous and unsure of what the future holds.
Oil prices are creeping higher, with crude prices edging up as the market heads for a fourth straight week of gains. The monthly report from the Organization of Petroleum Exporting Countries has forecasted a tightening global market with a 2 million barrels a day under-supply in the fourth quarter. The International Energy Agency is set to release its monthly oil market report later in the session, and traders will be looking to see if the organization downgrades its global demand outlook given the faltering macroeconomic growth.
