In the past trading week, we saw Bitcoin fall sharply on Thursday, followed by a rise. Over the weekend, Bitcoin's price fell again, but we can see that Bitcoin has started the new trading week well. What is important this week for the price of Bitcoin and the crypto market as a whole?
Table of Content
- Brief review of last week
- Quarterly figures in view
- Chinese Gross Domestic Product
- Goldman Sachs and Netflix
- New consumer price data from Europe
- IBM and Tesla
Brief review of last week
Last week, Bitcoin again performed well against US equity indices. This saw the Nasdaq100 and S&P500 hit new lows for the year, while crypto remained fairly stable. Notable was the sharp drop in Bitcoin and altcoins on Thursday, which was followed by a sharp rise.
In this trading week, market experts look to Europe. This week, the UK and the eurozone publish new inflation figures for the month of September. The US inflation figures are a good benchmark for Europe. Looking at US inflation figures, there is little chance that consumer prices in European countries will fall. For US companies, the reporting season starts this week. Big companies like IBM, Netflix, Goldman Sachs and Tesla will present their quarterly results.
Quarterly figures in view
On Monday, US banks Bank of America and BNY Mellon report their latest figures. Traditionally, good corporate figures support the classical market in the short term. RioTinto (a mining giant) also publishes its quarterly figures. Falling demand for commodities could have a negative impact on the US economy, so US monetary policymakers will be watching developments closely.
Besides last quarter's figures, forecasts for the coming quarters are important for investors. Forward guidance provides information on how companies are thinking about the coming quarters.
Chinese Gross Domestic Product
On Tuesday, China's National Bureau of Statistics publishes third-quarter figures. As China is one of the largest economies, GDP data from China is an important indicator of the global economy.
Last quarter, China's economy managed to grow by just 0.4%. The cause was the country's aggressive corona policy and huge problems in the real estate sector. Market experts now expect growth of 3.4%. Should the forecasts come true, this is not only good news for the domestic Chinese economy, but also positive for the current supply problems, as they will export more to Europe and the US. So in the long run, this could also have a positive impact on US and European markets.
Goldman Sachs and Netflix
Goldman Sachs is the last of the major US financial companies to open its books for the past quarter in pre-market trading on Monday. That the company outperformed its peers is unlikely. Indeed, the entire investment sector is sensitive to missed quarterly results in pronounced economic correction phases in the markets.
After the market close, investors can start looking at Netflix's figures. At the streaming service, the number of new paying customers is a key indicator of consumers' willingness to buy globally. A drop would mean that consumers are not spending their money and prefer to keep it in their own pockets, which could further inhibit market growth.
New consumer price data from Europe
Next Wednesday, September inflation figures will be released by the UK Office for National Statistics. Experts expect inflation to continue to rise. They expect a slight increase in inflation from 9.9% to 10.0%. Should the consumer price index come in lower than expected, it could cause upward price movements in the stock and crypto markets.
On Wednesday, the consumer price index of eurozone countries will also be published. Recently, inflation rose faster than expected. For the month of September, inflation is expected to be 10%. If actual inflation is higher than expected, the European Central Bank will consider raising interest rates again. Should the inflation figures come in lower than expected, financial markets may prepare for a possible rally. Moreover, pressure on the ECB to take further drastic interest rate steps in 2022 will temporarily ease somewhat.
IBM and Tesla
This week, IBM and Tesla will also announce their quarterly results. IBM is an important indicator of the technology sector. Investors are therefore keeping a close eye on the company. Falling revenues and profits are likely to continue to weigh on the technology sector.
Elon Musk's Tesla is also due to announce its quarterly earnings this week. If Tesla fails to meet analysts' expectations, it would be a remarkable confirmation of a weakening economy. Tesla's outlook is also important. A slowdown in its transformation to a more environmentally friendly automotive sector could have a negative impact on its development. In particular, persistently high lumber prices and supply problems could affect Tesla's business prospects. The big upside for the crypto market: Tesla currently has no bitcoin position, so it has no direct impact on the crypto market. That was different in previous quarters, when Tesla still had Bitcoin.