Preview of the week (economic & earnings calendar) starting 11 Apr 2022

Holidays affecting markets

15 April 2022 is a public holiday for Hong Kong, the US and many other countries as Christians celebrate Good Friday and Easter Sunday.  So, it will be a shorter week for most of us.

News and geopolitical outlook

Covid cases in the US surge as a warning was given

Dr Fauci has warned that the US may see a Covid surge in the coming Fall after 53 members of the US A-List were tested positive after a Washington dinner. The lockdown in Shanghai continues as the cases continue to surge.  The impact will hit the global market in the coming weeks.  Fortunately, this allows the US port congestion of Los Angeles and Long Beach (LALB) to ease, bringing relief to the US supply chain.  War continues as Russian troops focus their efforts on Eastern Ukraine.  More sanctions are expected to be levied on Russia.  

Fed has advised a need to be more aggressive, thus spooking the market during the week.  The market is expecting a more aggressive interest rate hike and the selling of their assets to lighten their balance sheet.

Elon Musk at GigaTexas

Exciting Cyber Rodeo

Tesla had their grand opening at Texas "Cyber Rodeo" on 7 Apr 2022.  There were showcases of Roadster, Cyber Truck, Semi and the factory.  Elon has announced that Cyber Truck deliveries will start in 2023 and there were talks about them looking into mining and refining Lithium as the mineral costs surged.

Some of the real estate stocks trading remained suspended in HKEX.  We await their submission of the required quarter's financials and see how HKEX will address the late submission.

Economic Calendar

There are a few important CPI updates from both China and the US.  This will be key information for the US Fed to firm up its actions to tackle inflation.  We are expecting the inflation rate to rise following the surge in pump prices which will eventually trickle into the market through a pricier supply chain, food, commodities and more.

Economic Calendar for week starting 11Apr2022

Earnings Calendar

Earnings for week starting 11Apr2022

For this week, the various banks and fund houses are in the spotlight.  Notable attention will be paid to BlackRock, Wells Fargo, Citi, Morgan Stanley.  We will get some important references from one of the chips powerhouse TSMC and Delta's results will paint a better picture of the recovery of the economy, especially for travel. 

 

US market outlook

1D chart of S&P500 as of 10Apr2022

Looking at the 1D chart above (S&P500), we can expect the market to slide further in the early part of the week.  Hopefully, this will bottom up over the next few days.