In the coming trading days, investors are likely to once again focus on developments in the trade dispute. At the same time, a planned speech by Fed Chairman Jerome Powell could provide monetary policy signals and thus influence interest rate cut fantasies. On this side of the Atlantic, the ECB central bank meeting scheduled for Thursday could also attract interest. Last but not least, the US reporting season, which continues to gather pace, should attract attention.
Investors are likely to continue betting on a "last-minute deal" in the customs dispute - tension should rise until August 1
Furthermore, uniform additional tariffs of 30% on EU imports to the USA are threatened from August 1. In return, the European Union (EU) recently held out the prospect of countermeasures with possible retaliatory tariffs of around 72 billion euros, in addition to the existing tariffs totaling around 21 billion euros. Investors should continue to hope for progress in the talks between the two economies and thus for a "last-minute deal". On the other hand, negative surprises should not be ruled out. The trade dispute could continue to hover over the markets like a classic sword of Damocles.
Powell speech on Tuesday in view - ECB meeting could attract interest on Thursday
Even if the economic data calendar in the new trading week is comparatively modest, there could still be important impulses.
On Tuesday, for example, Jerome Powell will be the focus of market players (2:30 pm).
How the ECB's European colleagues decide on interest rates on Thursday afternoon could also attract attention in the USA. The ECB's key interest rate decision is expected at 14:15. President Christine Lagarde will appear before the public from 14:45.
Initial claims for US unemployment benefits and purchasing managers in focus on Thursday
The weekly initial claims for US unemployment benefits usually come into focus on Thursday (14:30).
The S&P Global Composite Purchasing Managers' Index for the USA, which is seen as an important leading indicator of economic activity in the manufacturing and service sectors, is also likely to be of interest (15:45).
Last but not least, incoming orders for durable goods will be the focus of market players on Friday (14:30).
Reporting season continues with Coca-Cola, Alphabet and Tesla
In the reporting season, the figures for the past quarter from Coca-Cola (ISIN: US1912161007) and General Motors (ISIN: US37045V1008) are expected on Tuesday. On Wednesday, Alphabet A (ISIN: US02079K3059) and Tesla (ISIN: US88160R1014) will be in the spotlight. Intel, for example, will report on Thursday.
Dow Jones Industrial Average Index
Source: TradingView
