Next week to watch (27-31.05.2024)

27.05.2024 09:25|Analyst Team, Conotoxia Ltd.

Nvidia again positively surprised the markets with record quarterly revenue, 262 per cent higher than a year ago. Data centre revenue grew 427 per cent year-on-year and net profit increased 628 per cent year-on-year. The company also announced a 10:1 stock split, with the company pointing to the rapidly growing demand for AI and generative AI as key growth drivers. Key events in the markets over the coming week will be inflation readings in Germany and the Eurozone, and US GDP readings on Thursday.

Table of contents:

  1. German consumer price index (CPI) annualised (May)
  2. US gross domestic product (GDP) by quarter (Q1)
  3. Eurozone consumer price index (CPI) annualised (May)
  4. Stocks to watch

Wednesday, 29.05, 14:00 CET, German consumer price index (CPI) annualised (May)

April consumer price inflation in Germany was confirmed at 2.2 per cent. A twin reading, close to a near three-year low, was also recorded in March. The slowdown in services inflation was offset by a rebound in food prices and a smaller decline in energy costs, resulting from the end of the temporary gas tax cut this month.

Analysts' current forecast is for CPI inflation to rebound to 2.5 per cent.

graph inflation Germany

Source: Tradingeconomics.com

A higher-than-expected reading could have a bullish impact on the EUR, while a lower-than-expected reading could be bearish for the EUR.

Impact: EUR/USD

Thursday, 30.05, 14:30 CET, US gross domestic product (GDP) by quarter (Q1)

We know from first estimates that US real GDP grew by 1.6 per cent in Q1 2024, slowing from 3.4 per cent in the previous quarter. Compared to Q4 last year, the slowdown was mainly due to a reduction in consumer spending, exports and government spending, and a decline in federal spending, partly offset by an acceleration in residential real estate investment.

Analysts are now projecting an even greater slowdown in GDP growth - to 1.5 per cent.

graph of US GDP

Source: Tradingeconomics.com

A higher-than-expected reading could have a bullish impact on the USD, while a lower-than-expected reading could be bearish for the USD.

Impact: EUR/USD, US500

Friday, 31.05, 11:00 CET, Eurozone consumer price index (CPI) annualised (May)

The annual inflation rate in the euro area in April this year was 2.4 per cent, remaining at the same level as in March and reaching its lowest reading in nearly three years. A year earlier, inflation stood at 7 per cent. The slowdown was recorded in the cost of services and industrial goods excluding energy, whose prices continued to fall. In contrast, price increases for food, alcohol and tobacco accelerated. In its spring economic forecast for 2024, the European Commission expects inflation to fall faster than previously expected and reach 2.1 per cent in 2025.

The current analyst forecast is for a gentle rise in inflation, to 2.5 per cent.

EU inflation graph

Source: Tradingeconomics.com

A higher-than-expected reading could have a bullish impact on the EUR, while a lower-than-expected reading could be bearish for the EUR.

Impact: EUR/USD

Stocks to watch

  • Costco (COST)

Costco Wholesale, the US-based warehouse club retailer, will announce financial results for its fiscal third quarter on 30 May. Analysts are forecasting revenue growth of 7.9 per cent and a net profit increase of 25 per cent. Costco has partnered with Uber Eats, allowing users to order products without a Costco membership. The average forecast share price is $783, which is in line with current levels.

 

Grzegorz Dróżdż, CAI MPW, Market Analyst of Conotoxia Ltd. (Conotoxia investment service)

The above trade publication does not constitute an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No. 596/2014 of April 16, 2014. It has been prepared for informational purposes and should not form the basis for investment decisions. Neither the author of the publication nor Conotoxia Ltd. shall be liable for investment decisions made on the basis of the information contained herein. Copying or reproducing this publication without written permission from Conotoxia Ltd. is prohibited. Past performance is not a reliable indicator of future results.

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71.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.48% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading on CFDs is provided by Conotoxia Ltd. (CySEC no.336/17), which has the right to use the Conotoxia trademark.