Reporting season is coming – Tech Viral Tips

Rising US Treasury yields, sparked by rising speculation that the Federal Reserve will begin raising prices from March 2022, have dampened enthusiasm for a rise in stocks. As the US Q4 2021 earnings season begins, traders should also expect an unpredictable financial/geopolitical outlook, to explode sometime in 2022.

The unrest in Kazakhstan, along with Russian military build-up on the Ukrainian border and major unrest in Belarus, have brought NATO diplomacy back on the agenda of most stock traders.

As earnings season begins in the coming days, companies are likely to struggle to release similar figures for the fourth quarter. Profit is expected for the S&P500 companies, with an increase of +22.3 percent.

The big Wall Street banks, JPMorgan, Citigroup and Wells Fargo, will be the first to report. Investors are eager to hear about inflation, if companies believe the supply chain constraints that helped prop up prices last year, will ease in the coming months and forecast 2022.

The first trading week in 2022 has been nothing but boring for the world’s biggest bond markets. Short-term Treasury yields hit highs not seen since the start of 2020, 10-yearly yields up more than 20bp, Germany’s -0.06 per cent Bund yield approaching 0 per cent and Britain’s sovereign borrowings for Australia Costs are at multi-month highs.

The deployment of Kremlin troops is widely seen as a gamble to secure its interests in the Central Asian oil and uranium producing nation. The impact is felt in all commodity markets and weighs on the ruble as Russia finds itself in the spotlight again: tensions over Ukraine have dominated its markets. The consequences of the unrest in Kazakhstan are still unclear, but markets will have to examine the consequences of geopolitical risks and diplomatic alignment for some time to come.

Bitcoin prices fluctuate wildly

After a wild 2021, Bitcoin New Year’s hangover lasted until the first week of 2022 and could get worse. The computing power of its network was significantly reduced this week as Kazakhstan’s internet was shut down during its uprising, affecting its cryptocurrency mining industry, the second largest in the world.

Important Macroeconomic Indicators

The unemployment rate in the euro zone stood at 7.3 percent on Monday. We got the November update.

The US NFIB Small Business Optimism Index was up 98.4 on Tuesday. We got the December update.

On Wednesday, mainland China’s consumer price index (CPI) was up +2.3 percent y/y in November. Mainland China’s producer price index (CPI) stood at +12.9 percent year-on-year in November.

On Thursday, we’ll get the latest December export data from mainland China (the old one was +16.6 percent y/y) and import data (the previous one was +26.0 percent. Wow, that’s still the engine of the world’s manufacturing economy November). The producer price index (PPI) in the year-on-year was +9.6 percent, we get the figures for December.

On Friday, Japan’s PPI stood at +9.0 per cent year-on-year in November. This is indeed a phenomenon of the COVID era. US retail sales, excluding automobiles, should grow +0.3 percent m/m in December.