Look Ahead 1/8/23: RBA; BP, Greggs, HSBC, Diageo, Pfizer earnings
Central bank action from the RBA, China Caixin PMI data and more big earnings updates. Brace for the latest US ISM manufacturing PMI data for July and a rate decision from Australia.
(Video Transcript)
Big events next month
On August 1st, 2023, there will be several important events and data releases happening around the world that can affect the economy and businesses. Let's take a look at some of them in simpler terms.
In China, there will be data released called PMI, which measures manufacturing activity. If this number goes down from 50.5 to 49, it means that manufacturing is shrinking. This can have an impact on businesses that rely on manufacturing in China.
The Reserve Bank of Australia (RBA) is expected to announce an increase in interest rates. This means that it will be more expensive to borrow money, which can affect businesses and the economy in Australia.
In Germany, they will release the latest unemployment figures. If the unemployment rate stays at 5.7%, it means that the job situation is not getting worse or better. This can give us an idea of how the German economy is doing.
In the United States, there will be data released on manufacturing activity. If the number goes up from 46 to 48, it means that there is a slight improvement. This can be good news for companies that are involved in manufacturing.
Oil price situation
We will also get to know the oil supply situation through the API crude oil inventories. This can affect oil prices, which have been high lately. If there is a shortage of supply, prices may go up even more.
There will also be companies releasing their earnings reports. For example, BP, a big energy company, is expected to report weaker financial results. This could be because the prices of the things they sell have gone down. Another company, Greggs, a bakery chain, doesn't expect to make a lot of profit in the future. Despite this, their share price has gone up since the beginning of the year.
Overall, 1 August will be a busy day for economic data and earnings reports. Investors will be watching these events closely to understand the global economy and individual companies' performance.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
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