Experts: Global markets are set for a week full of economic events.

economy

Experts: Global markets are set for a week full of economic events.

International financial experts expect global financial markets to experience a week filled with events, economic data, and earnings reports from several major companies. This has increased the likelihood that investors will face risky trading days, making them prepared for any surprises.

James St. Aubyn, chief investment officer at Ocean Park Asset Management in California, said in a report published by MarketWatch that global stock markets will witness a week filled with corporate earnings, meetings of the US Federal Reserve (the central bank) and the Bank of Japan, economic data on US jobs, and anticipation of what will happen on August 1, the deadline set by US President Donald Trump to decide on imposing tariffs.

He added that the successive gains witnessed by global stock markets over the past week could be negatively impacted during this week's trading, which begins tomorrow, Monday, after shares of the largest American companies jumped to levels not seen since 2021. He noted that even smaller, unprofitable companies have recently achieved significant gains.

He pointed out that there is a state of anxiety prevailing among investors, fearing that the markets will witness a major sell-off during this week's trading, describing the expected state of the markets as similar to "investors walking a tightrope fraught with potential risks due to a series of anticipated economic events."

Regarding corporate financial results, Ubben said that the current earnings season has seen a strong start, with profits exceeding experts' expectations, despite most predictions of a decline in companies' financial results. He noted that 163 companies listed on the Standard & Poor's 500 Index on Wall Street are scheduled to announce their earnings this week.

For his part, David Bianco, Head of Investment Americas at DWS Asset Management Group, said, "I believe corporate earnings will see a significant slowdown due to the impact of the US tariffs, which will be felt across corporate profit margins, particularly in the second half of the year."

Bianco noted that the White House has announced several trade agreements in recent days, including with Japan, the Philippines, and Indonesia, but that agreements have yet to be reached with some of the United States' largest trading partners, including the European Union, Canada, and Mexico, which represents the greatest risk to the markets.

He explained that a series of US economic data is scheduled to be released next week, including the Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve's preferred inflation gauge, and the ISM Manufacturing Index for July.

He indicated that investors' primary focus will be on several labor market reports, with Friday's jobs report expected to show 102,000 new jobs created in July.