Skip to content
Risk warning: Our products are leveraged and carry a high level of risk, which can result in the loss of your entire capital. Such products may not be suitable for all investors. It is crucial to understand the risks involved fully.
  • Support
  • For Institutionals
  • Trading

    Trading Platforms

    • MetaTrader 4 Terminal
    • MetaTrader 5 Terminal
    • PAMM Accounts
    • Equinix Trading Server

    Markets coverage

    • Forex Currencies
    • Spot Metals
    • Commodities

     

    • CFDs on Stocks
    • Indices
    • CFDs on Crypto

    Start Trading

    • Standard Accounts For individuals
    • Institutional Account For professionals
    • Deposits & Withdrawals
  • Conditions

    Trading Conditions

    • Spreads Overview
    • Swap-Free
    • Leverage Information

     

    • CFD Specifications
    • Full Trading Conditions

    Invest on your terms

    Transparent pricing, reduced trading costs, and leverage that adapts to your strategy.

    Explore conditions
  • Tools
    • Weekly Outlook
    • Daily Technical
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
  • Trading
    • Markets Coverage
    • MetaTrader 5 Platform
    • MetaTrader 4 Platform
    • Standard Accounts
    • Institutional Account
    • PAMM Accounts
    • Equinix Trading Server
    • Deposits & Withdrawals
  • Conditions
    • Spreads Overview
    • Leverage Information
    • Swap-Free Trading
    • CFD Specifications
    • Full Trading Conditions
  • Tools
    • Daily Technical
    • Weekly Outlook
    • Market Commentary
    • Economic Calendar
    • News & Insights
  • About
    • About OnEquity
    • Company News
    • Legal Documentation
    • Client Protection
    • Help & Support
    • FAQs
  • Partners
  • Client Portal
  • Open Account
Edit Content
  • English
    ACTIVE
Other languages:
  • Español – Spanish
  • Português – Portuguese
  • English – International
Open Account
Client Portal
Markets, Stocks

Market Highlights for the Week: Inflation, Earnings, Oil

July 22, 2024 OnEquity

A busy week awaits the markets, with US inflation data that could cement expectations of a rate cut in September. Earnings season gathers momentum with the release of the results of major companies and many European banks. Meanwhile, Eurozone PMI data will highlight the run-up to the European Central Bank’s next rate cut. Here’s what will happen in the markets in this week.

US inflation data

Friday’s US inflation data will test market expectations that the Federal Reserve is almost certain to cut interest rates in September.  June’s personal consumption expenditures (PCE) price index is estimated to have risen 0.1 percent for the second month in a row, which would put three-month annualized core inflation at the slowest pace this year, below the Fed’s 2 percent target.

The consumer price index declined in June for the first time in four years. This more moderate-than-expected report triggered a rotation in equities and strengthened market expectations that the Fed is ready to cut rates in September. A few days after the CPI, Fed Chairman Jerome Powell said that the second quarter inflation readings “somewhat increase confidence” that the pace of price increases is returning to the Fed’s target on a durable basis.

Earnings season reaches its peak

With earnings season in full swing, optimistic investors are hoping that strong corporate results will stem the decline in technology stocks, which has halted this year’s US stock rally.  The S&P 500 tech sector is down nearly 6% in just over a week, as rising expectations of interest rate cuts and a second Donald Trump presidency divert money from this year’s winners to sectors that have languished in 2024.

Second-quarter earnings may help technology companies regain focus. Tesla (TSLA) and Google parent Alphabet (GOOGL) release their results on Tuesday, kicking off the group of “Magnificent Seven” mega-caps that have led markets since early 2023.  IBM (IBM), Ford (F), and General Motors (GM) are among other large companies releasing results later this week, and investors are eager to hear the companies’ views on consumer strength and expectations for future economic growth.

European bank results

This week, the European banking sector, which has enjoyed a run of rising profits and stock prices, will be given a reality check with the start of the second quarter earnings season. 

The main trump card is net interest income, which has risen as a result of rate hikes. However, the party could be short-lived as the ECB plans further rate cuts and the Bank of England is set to ease monetary policy.

Investors will also want to see how lenders fare as political uncertainty intensifies; French bank stocks fell sharply during the recent election. 

This Wednesday will see the release of results from big names such as Deutsche Bank (DBK) (Germany), Lloyds Banking Group (LON) (UK), BNP Paribas (BNP) (France), Banco Santander (SAN) (Spain), and UniCredit (UCG) (Italy).

Analysts note that the reading from US companies that have already reported is that higher investment banking revenues should boost lenders with large investment banking arms, such as Deutsche Bank and Switzerland’s UBS (UBS), but any disappointment in interest income figures could generate negative market reactions.

Eurozone PMI

Although Eurozone economic growth remains sluggish, the strength of the dominant services sector, driven by tourism, has allowed price pressures to remain at uncomfortably high levels.  This has presented a challenge for the ECB, so Wednesday’s PMI data will be closely watched after the central bank held interest rates at 3.75% last Thursday and resisted giving guidance, saying it was data-dependent.

The ECB, which in June cut borrowing costs for the first time in five years, sees inflation moderating.  Markets are betting heavily on a rate cut in September, supporting eurozone equities, government bonds, and the euro for now, but also raising the threat level of any PMI results that might change the ECB’s view.

Oil prices

Oil prices settled at their lowest level since mid-June on Friday as investors monitored a possible ceasefire in Gaza, while the strength of the dollar also weighed.  The war in Gaza has caused investors to apply a risk premium when trading oil, as tensions threaten global supplies.

If a ceasefire is reached, the Iranian-backed Houthi rebels could ease their attacks on commercial vessels in the Red Sea, as the group claimed the attacks were in support of Hamas.  Meanwhile, the US dollar index rose after better-than-expected economic data, pressuring oil prices.  The strengthening of the US currency reduces demand for dollar-denominated oil from buyers holding other currencies.

  • earnings
  • Eurozone
  • inflation
  • oil

Post navigation

Previous
Next

Search

Categories

  • Analysis (217)
  • Beginner (24)
  • Cryptos (145)
  • Currencies (188)
  • Daily Technical (147)
  • Education (64)
  • Expert (23)
  • Intermediate (17)
  • Markets (434)
  • News & Releases (22)
  • Stocks (290)
  • Uncategorized (1)
  • Weekly Outlook (69)

Recent posts

  • Trading Hours Update – Additional Changes for August 2025
  • Today’s stocks to watch: Berkshire, Boeing, and Amazon
  • U.S. stock futures rise on heightened hopes for interest rate cuts

Tags

Analysis Bitcoin Cardano CPI Crypto Cryptocurrencies Currencies Daily Dollar earnings Education Elections ETF ETFs Ethereum Euro Fed Index inflation Litecoin Market Markets Nasdaq oil Outlook Pound Ripple SEC Solana Stablecoin Stock Market Stocks Stocks Market Stocks today Technical Technical Analysis Technology Tether Trading Trump Wall Street Weekly Weekly Outlook Yen Yuan

Related posts

Beginner, Education

Inflation Explained: Causes, Effects, and Economic Impact

April 3, 2025 OnEquity

Inflation is a key aspect of the economy and plays a vital role in financial analysis. To understand its impact, it is vitally important to be familiar with its different manifestations, such as deflation and hyperinflation. Central banks have the difficult task of maintaining a balance between economic growth and price stability. The vast majority […]

Stocks

U.S. Stocks Rise; Inflation and Fed in the Spotlight

November 11, 2024 OnEquity

U.S. stock markets and index futures rose on Monday, extending their recent rally, as investors focused on upcoming inflation data and insights from Federal Reserve officials set to speak this week. In early trading, Dow Jones futures were up about 175 points, up 0.4%, S&P 500 futures were up about 21 points, up something close […]

Stocks

U.S. Stock Markets Steady After Tech Sector Losses, Earnings in Focus

October 16, 2024 OnEquity

U.S. equity markets stabilized on Wednesday after losses in technology stocks, driven by weak results from leading chipmaker ASML (ASML), pulled Wall Street away from its all-time highs. Losses in the semiconductor sector hit Wall Street on Tuesday, with the NASDAQ Composite down nearly 1%, while both the S&P 500 and Dow Jones Industrial Average […]

  • Privacy policy
  • Client agreement
  • Legal
  • Support
  • +2484671965
  • [email protected]
  • Chat with us
Company
  • About us
  • Regulation
  • Safety of funds
  • Company news
  • Insights
  • FAQ
Account options
  • Standard accounts
  • Institutional account
  • PAMM accounts
  • Swap-free account
Conditions
  • Spreads overview
  • Leverage tiers
  • CFD specifications
  • Markets coverage
Trading tools
  • MetaTrader 5
  • MetaTrader 4
  • Equinix trading server
  • Economic calendar
  • Daily technical
  • Weekly outlook
  • Market commentary
OnEquity Ltd is incorporated in Seychelles as a Securities Dealer with License No. SD154, authorized by the Seychelles Financial Services Authority (FSA), adhering to the Consolidated Securities Act, 2007. Registration No. 810588-1.

The website is operated and provides content by the OnEquity group of companies, which include:

OnEquity SA (Pty) Ltd, incorporated in South Africa, Company reg. 2021/321834/07, regulated by the Financial Sector Conduct Authority (FSCA) with FSP No. 53187.

OnEquity LLC, recognized by the Registrar of International Business Companies and the Financial Services Authority in St. Vincent and the Grenadines, Registration No. 286 LLC 2020.

ONEQ Global Ltd, registered in Cyprus, Company reg. HE 435383, located at Agias Zonis 22, Limassol, focusing on comprehensive service solutions within the OnEquity Group.
Risk Disclosure: Trading in financial instruments involves substantial risk and may not be suitable for all investors. The value of investments is volatile and can result in total loss of capital. Investors should consider their financial situation, investment experience, and risk tolerance, and may seek professional advice. Past performance is not indicative of future results.

Eligibility: Services are available to individuals 18 years or older.

Restricted Jurisdictions: The content provided by OnEquity is not intended for residents of the United States, Canada, North Korea, Yemen, Iran, Belgium, Syria, or any jurisdiction where such distribution or use would be contrary to local law or regulation.

All trademarks™ and brand names belong to their respective owners and are used here for identification purposes only. Use of these names does not imply endorsement.
© OnEquity. All Rights Reserved.