Daily Market Analysis

Tech Sector Earnings on the Radar of Traders

April 24, 2023

It’s earnings season in the tech world, and boy, are we excited to see what the big guns like Amazon, Alphabet, Facebook, and Microsoft have in store for us this week. With the Fed in its blackout period, it’s all eyes on these tech giants to see if they’ll be the ones to drive the market direction. Will we see some impressive numbers that boost our spirits and counter those pesky recession concerns? Or will there be some disappointing misses that exacerbate our fears of an impending economic downturn? It’s a nail-biting wait, but we can’t wait to see how it all unfolds!

In the currency world, the Australian Dollar has been feeling the weight of weaker commodity prices, slipping below the US$0.67 handle during Asian trading hours on Monday. All eyes will be on the local CPI data release on Wednesday, as we try to assess whether the RBA will resume its rate-hiking ways in May. And oh, the Euro has been in consolidation mode below the elusive 1.10 level, but it got a boost from solid services PMI data at the end of last week. We’re eagerly watching for any potential break higher, but it might all depend on whether the USD weakens. Futures markets are pricing in a whopping 90% chance of a May hike by the Fed, so the results of US macro data this week could really shake things up in the rate expectations and USD departments. Let’s see how it all plays out!

Now, let’s talk about oil. It’s been a rollercoaster ride, with growth and recession concerns keeping the price subdued despite those OPEC production cuts. WTI is still a few dollars below the coveted US$80 level, and the immediate outlook is as clear as mud with the market going back and forth on the future path of US interest rates. The uncertainty over how restrictive US monetary policy will be in the second half of the year is definitely putting a damper on oil prices and contributing to the recent weakness. We’ll be keeping a close eye on this one!

As we kicked off the new trading week in Asia, things were a bit lackluster with traders mostly in wait-and-see mode ahead of the next batch of corporate earnings in the US. But hey, there’s more to look forward to this week! We’ve got the US GDP figures coming out on Friday, and the Bank of Japan (BOJ) policy meeting to keep us on our toes. So, buckle up, folks! There’s no shortage of exciting events coming up that’ll have us traders pondering and speculating in the week ahead. Let’s make it a thrilling one! Cheers to an eventful trading week!

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