Today, markets will mainly react to geopolitical developments: the start of the American blockade of Iranian ports at 4 pm could maintain high volatility and support oil prices, while any news of de-escalation or a maritime incident will immediately change market sentiment.
In Europe, market openings remain under pressure from risk factors; investors will focus primarily on stock indices, the dollar, and energy commodities as they will best indicate whether fears of further escalation are intensifying.
Three elements will be crucial during the week: the evolution of the situation in Iran, the start of the first-quarter earnings season, and macroeconomic data from the United States and Europe, which could either confirm or challenge the impact of rising oil prices on inflation.
The upcoming list of publications includes Polish CPI, US PPI, housing sales data, ECB minutes, eurozone HICP inflation, and Chinese figures; the market will have to deal simultaneously with geopolitics, inflation, and growth prospects.
Special attention will be paid to banks, LVMH, ASML, TSMC, and Netflix, as their results will provide the first clues about the health of companies at the beginning of the earnings season.
(Source: XTB)
(Source: XTB)
(Source: XTB)
