Central Banks and Earnings

April 27, 2020

Central Banks and Earnings Photo

After a week that saw oil prices reach a previously unthinkable level of negative $37/barrel and then rebound back to positive, the impact and determination of why will capture the market’s attention for weeks to come. Additionally, traders are likely to be skittish, wondering what other perils exist in this unprecedented environment if oil prices can decline so drastically.

This week, the markets will be watched closely as the Federal Reserve, Bank of Japan (BOJ) and European Central Bank (ECB) all hold meetings. Observers will also be on the lookout for any new policy actions that might emerge from these meetings. I continue to expect the world’s central banks to be aggressive in implementing programs to support the beleaguered global economy. Although I am not expecting rate cuts, I do believe the BOJ and ECB will provide additional support in terms of asset purchase programs.

Earnings season also gets into full gear this week, with many companies across sectors reporting results. The market will be looking for forward guidance and insight into reopening plans more than details about the actual Q1 results.

We hope that you and your family are well and staying safe.

Tags: FOMC | oil prices | Earnings | Federal Reserve | Bank of Japan | European Central Bank

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