Before we dedicate ourselves to the MEGA week, we first take a look at the current situation on the markets. With current 12,244 points the Dax (chart since Friday noon) will probably start the new week relatively unchanged from Friday evening. The Nikkei with -0.3% and the Shanghai Composite with -0.8% are currently showing slightly negative signs. But that doesn’t have to mean much.
After the forex market on Thursday and Friday was mixed up by quite opposing statements by Fed members (EURUSD first up, then down), the Euro has been trading against the US Dollar since Friday evening almost in a comatose silence at currently 1.1216. The market is waiting for the ECB!
The Dow fell again quickly on Friday evening from 27,300 to 27,150 points. Since then, however, it has also been moving sideways. Well, the waiting has obviously begun. And so we already come to the MEGA week! Today on Monday the calm before the big storm is announced.
MEGA week starts Tuesday
But then. On Tuesday the Tories elect their new party leader. They automatically elect that person to the new British prime minister. And that will most likely be the Brexit hardliner Boris Johnson. He has now made it more than clear that Britain will leave the EU in October at the latest. With or without a treaty! Once Johnson is elected, will the British Pound fall sharply? And what is the British stock market doing? It will be damn exciting. Also on Tuesday Texas Instruments and Snapchat report their quarterly figures.
Then on Wednesday early in the morning Deutsche Bank and Daimler report their figures. What a tension! Daimler fully in the face of the car crisis and DB fully in the face of its own crisis! Also, Boeing announces Wednesday noon its numbers and especially Caterpillar! Wednesday evening then Facebook and Tesla report their quarterly figures.
On Thursday (MEGA Day in MEGA Week) the regular meeting of the Turkish Central Bank will take place. Never before has the tension been so strong when it comes to the Turkish central bank. Just recently, President Erdogan had fired the head of the central bank because, according to Erdogan, he had refused to implement his instructions to lower interest rates. The market expects the new head of the central bank to “implement” Erdogan’s wishes. For the Turkish lira this could mean a lot of turbulence. Then on Thursday at 01:45 p.m. the ECB’s interest rate decision follows and at 02:30 p.m. the more important PK of the ECB. Analyses expect the course to be set for a rate cut in September. The ifo index will also be published at 10 a.m. on Thursday. And….puhhhh… on Thursday BASF, Volkswagen, Intel, Google and Amazon will also report their quarterly figures.
And on Friday, as a small final, Twitter reports its quarterly figures. So, all of you please note: From Tuesday to Thursday it can get really turbulent in the markets!