Janet Yellen and the U.S. Federal Reserve are set to take centre stage this week with a policy announcement on Wednesday. Recent surprise moves by central banks in Switzerland and Canada and a larger than expected stimulus package from the European Central Bank could force the Fed’s hands. Here are five potential market-moving events in which every investor should be aware:
1. Federal Open Market Committee (FOMC) Policy Statement: Wednesday will likely be the most important day for global markets as the U.S. Federal Reserve meets and releases its policy statement. Traders will be closely watching and listening for any changes in the Fed’s statement from last time. Any mention of the events in Europe could be interpreted as the Fed’s softening its timeline for future interest rate hikes.
2. U.S. Corporate Earnings: Big names set to release financial results include Microsoft (NASDAQ: MSFT) and Texas Instruments (NASDAQ: TXN) on Monday, Bristol-Myers Squibb Company (NYSE: BMY), Caterpillar Inc. (NYSE: CAT), Procter & Gamble (NYSE: PG), and Apple Inc. (NASDAQ: AAPL) on Tuesday, Facebook (NASDAQ: FB) on Wednesday, and Google (NASDAQ: GOOG) on Thursday.
3. Oil Prices: Continue to slow growth in most Gulf nations. A recent poll shows Saudi Arabia’s hydrocarbon export revenue in 2015 to tumble to $213 billion, instead of $290 billion. However, heavy spending by Gulf governments and healthy private sector activity is expected to prevent any serious slumps. With the recent death of King Abdullah of Saudi Arabia, investors have yet to find if there will be any radical changes in its oil policy. U.S. crude inventory data, expected to be released Wednesday morning, could also have an impact on the market.
4. U.S. GDP Report: The U.S. is expected to release its fourth-quarter GDP report on Friday. Economists expect growth in slow in Q4 as business investment eases.
5. U.S. Home Sales: (Jan/27/14) New home sales measure the number of newly constructed homes with a committed sale during the month. The narrow piece of data is a good indicator of the demand for housing along with economic momentum. As well, has a powerful multiplier effect through the economy, and therefore across the markets and your investments.
Notable Canadian earnings releases this week: Metro Inc. (TSX: MRU.A), Open Text (TSX: OTC) and CN Rail (TSX: CNR) on Tuesday, Methanex (TSX: MX) and AGF Management (TSX: AGF.B) on Wednesday, Potash Corporation of Saskatchewan (TSX: POT) and Rogers Communications (TSX: T.RCI.B) on Thursday.
