FUNDAMENTAL REVIEW FOR THE WEEK (18 - 22 November 2024)

The coming week promises to be relatively calm in terms of economic events, but markets may be under pressure due to potential statements from Donald Trump's team, as well as the geopolitical situation.

In general, most financial sections note a general strengthening of the US dollar. Fed Chairman Jerome Powell, in his speech at the Dallas Fed, reduced expectations for an imminent reduction in interest rates, noting the resilience of the economy, a strong labor market and ongoing inflationary pressures. He emphasized that there is currently no need for an urgent rate cut.

On Thursday, data from the US on weekly jobless claims will be important (the forecast is not in favor of the dollar so far), especially after the election. The Christmas shopping season is expected to support the labor market. It is also worth paying attention to the growth of sentiment in the Philadelphia Fed manufacturing index and its possible impact on domestic production in the US in light of Trump's tariff hike.

Also on Thursday, the UK will release inflation data, which could adjust market participants' expectations regarding the Bank of England's rate trajectory, which will also have an impact on the currency market. A rate cut from the Chinese central bank is not expected yet.

On Friday, attention will be focused on economic reports, in particular the PMI indices for the Eurozone, Britain and the US, which will provide the first indication of the growth of the world's leading economies in November. The European PMI is usually considered the most important, while the reaction to the US data may be quite short-lived pending the more important ISM index.

On the US stock market, investors' attention will be focused on the Nvidia report, which is expected on Wednesday after the close of trading. The company's revenue is expected to grow by more than 80% to $32.9 billion. However, problems with overheating of the new Blackwell AI chip are reported. #analytics

Good luck and informed investment decisions!