May 24-30: Eurozone economy, American retail giants and BATX

Here’s everything you need to know about the stock market this week in three minutes flat.

From May 17 to 21, we’re looking at some big data points that could influence the eurozone economy and which companies could shake the markets.

Outlook for the eurozone

This week is a big one for the European economy. We saw a strong start to the month, boosted by economic re-opening and lockdowns easing. But there are still challenges ahead.

On Tuesday, May 18, we’ll kick off with trade balance figures in the eurozone. For several months, the trade surplus (exports > imports) has been squeezed, with an overall drop in exports, especially between the European Union and the United Kingdom.

On the same day, unemployment data for the region will be released. The latest estimates point to positive growth again (+0.3%), with an increase in France, but stagnation in Germany.

Finally, European headline inflation will be released on Wednesday 19 May. Will it be as spectacular as the United States where a huge spike in inflation (4.2%) sent the markets plunging. Analysts are currently talking about a slowdown in April.

Sector to watch: American retail

This week, three American retail giants will publish their quarterly earnings. This sector hasn’t been hit too hard by the pandemic and could see its numbers jump even further as the economy reopens.

Walmart is the first in the spotlight this Tuesday, May 18. The last two quarters have shown solid results for the group and we’re expecting earnings to come in at $1.21 per share, a slight increase year-on-year.

Home Depot will follow up with hopes of a record spike. Analysts are expecting 44% year-over-year growth.

Finally, Target will deliver its figures on Wednesday. Just like its competitors, we should see strong growth with earnings per share estimated at $2.07.

All eyes on BATX

The Chinese web giants, known by the acronym BAXT (Baidu, Alibaba, Tencent and Xiaomi) are all in the spotlight this week too.

First, Tencent Music Entertainment and Baidu will present their quarterly figures on Monday and Tuesday, respectively.

Alibaba is also on our radar for several reasons. The company has an ongoing disagreement with Beijing, while they also try to secure partnerships in Europe. On top of that, Jack Ma’s company has a major competitor to deal with: ByteDance. The company behind TikTok has decided to get into e-commerce.

Economic calendar and earnings results

Monday – Inflation in Italy, trade balance in Spain, construction index in Belgium.

Tuesday – GDP growth and trade balance in the Netherlands, quarterly figures from Take-Two Interactive.

Wednesday – US oil stock, Cisco quarterly figures.

Thursday – Unemployment figures in the United States, quarterly figures from CTS Eventim and Südzucker.

Friday – PMI Markit industrial and services in France and Germany, quarterly figures from Genius Brand.

We’ll be back next Monday with another sneak peek into the stock market agenda. In the meantime, have a good week on the markets!

Today’s Weekly brief was brought to you 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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