BUX Breakdown: Oracle earnings, Joe Biden in Europe, Fed to taper?

Welcome to the BUX Breakdown where we go through everything you need to know on the stock market for the week ahead, in three minutes flat!

Here’s what’s on the agenda between June 14th-18th. Joe Biden has arrived in Europe for a handful of diplomatic meetings. Investors believe this could spark some fresh momentum into the markets. We’ll also take a look at Oracle’s upcoming earnings report and the next Fed meeting.

Cloud growth for Oracle?

Although the majority of earnings season is now over, there are still a few companies left to report their numbers.

US tech company Oracle will reveal its figures on Tuesday, June 15th. The Nasdaq-listed company recently hinted at strong growth as it moves towards a cloud-based offering. For the fourth quarter, we’re expecting earnings to come in at $1.37 per share, with a 5-7% increase in revenue year-over-year.

“America is Back”: Joe Biden’s trip to Europe

Last week, the US president arrived in Europe and his tour will continue over the next few days. Biden’s main goal is to repair some trust with Europe’s economic leaders after four years of tension under the Trump administration.

A few days ago, he initiated a plan for a 15% global tax on multinationals. He’ll also attend a second G7 summit over the weekend of June 11th-13th in Cornwall, England. Biden intends to discuss the climate crisis, as well as the prospects for a global economic recovery with the heads of state and government of the G7 countries (United Kingdom, France, Italy, Germany, Canada, Japan), 

Joe Biden will also attend the NATO summit as well as the EU-US summit this week in Brussels. Finally, his controversial meeting with Russian president Vladimir Putin is currently set for Wednesday, June 16th in Geneva.

Why is Joe Biden’s European trip important to your portfolio? Most of the discussions this week will be around the issue of post-pandemic economic recovery. Their comments could have an impact on the global stock markets. The meeting between Biden and Putin could also inject some volatility into the financial markets.

Finally, traders will be weighing up the impact of a 15% tax on multinationals like Amazon, Facebook and Google.

Will the Fed set new rates?

Employment figures, stimulus, inflation, interest rates… The US Federal Reserve will have plenty to talk about at its upcoming meeting, scheduled for June 15th-16th.

Chairman Jerome Powell has kept rates low and stimulus flowing since the Covid-19 crisis began. But he will probably have to comment on the potential ‘tapering’ of these policies, or winding them back, by the end of the summer or the beginning of autumn.

The Fed’s decisions often have a huge impact on the major Wall Street indexes. You can therefore monitor the movements of ETFs that replicate the S&P 500, for example, such as the S&P 500 Index ETF (Vanguard) that we offer on the BUX Zero app.

The sustainable investing theme continues

If you follow our news, you may have seen that we are celebrating sustainable investing and environmental, social, and governance (ESG) factors throughout the month of June. Check out our latest article which dives deeper into an ESG ETF available on BUX Zero.

Economic and earnings calendar

Monday – Industrial production in the eurozone.

TuesdayOracle quarterly figures. Final inflation for Germany and Italy. Unemployment rate in Great Britain. Trade balance in the eurozone. Industrial production in China. GDP in Russia.

Wednesday – Inflation rate in Britain. Unemployment rate in the Netherlands.

Thursday – Trade balance in Italy and Spain. Final inflation rate in the eurozone. Unemployment rate in the United States. Adobe quarterly figures.

We’ll be back again next week for another edition of the BUX Breakdown. In the meantime, have a great week on the markets!

This BUX Breakdown was written by Clémentine Pougnet.

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All views, opinions, and analyses in this article should not be read as personal investment advice and individual investors should make their own decisions or seek independent advice. This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.

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