March 21-25 | European Council and 3 US Stocks to Watch this Week

Diplomatic peace talks? Ukraine joining the European Union? Oil and gas regulation? This week could bring some much-needed answers to the geopolitical crisis. We’ll also take a look at the upcoming European Council meeting, and how to invest in the stock market in the coming days.

The European Council sets the tone

All eyes are on Brussels this week as the European Council meets to discuss key issues affecting the European Union. Specifically, the meeting will take place on March 24th and 25th. The leaders of the 27 member countries will discuss security in the region and potentially approve a roadmap in terms of defence.

The European Council is also under pressure to come up with a plan that guarantees the supply of energy at regulated prices. The price of oil and gas recently touched historic highs and it’s beginning to have a negative impact on consumers. Finally, the organisation will discuss the ongoing pandemic and how to rebuild the economy stronger than before.
Several member states have already met to talk about protecting Ukraine. They’ve even considered integrating the country into the EU in the future. Read this article to find out more about this development.

How to prepare your portfolio for these events?

European markets have suffered a steep decline lately due to both the war and high inflation levels. These geopolitical discussions are crucial, as they often have a direct impact on the stock market. For example, the French stock market climbed 7% ahead of the recent European summit. By the end of the event, however, when no diplomatic solution was agreed, the market erased all the gains.

As always, diversification is your friend! Spreading your investments across different companies and industries is always wise. But you should also consider different geographic regions to solidify your portfolio. For example, you could build a portfolio of diverse ETFs from many different parts of the world. Remember that, despite many crises and difficult economic periods, the world economy has always progressed. Even when things look difficult, it’s important to keep a diversified portfolio and remain focused on the long term.
By the way, we just added 32 new ETFs to the app which allow you to invest in new markets, such as those in emerging countries.

3 US stocks to watch

Outside the world of geopolitics, we also have a handful of earnings reports on Wall Street this week. Let’s take a look.

  • Nike: The sports company will present its quarterly figures on Monday, March 21st. Nike is expected to report earnings of $0.73 per share. That would be a 19% decline from the same quarter last year. Additionally, analysts forecast net sales of $10.61 billion, up 2.49% from a year earlier.
  • Adobe: Software company Adobe will take the stage a day later on Tuesday, March 22nd. Adobe is expected to report earnings of $3.34 per share, which would represent year-over-year growth of 6.37%. Revenue could reach $4.23 billion, up 8.34% from the previous quarter.
  • General Mills: On Wednesday, March 23rd, it’s the turn of General Mills. The food company is home to famous brands like Cheerios, Trix and Häagen-Dazs. The company is expected to report earnings per share (EPS) of $1.05, up 28.05% from the prior quarter. Quarterly revenue could be $4.51 billion, down 0.17% from the same period a year earlier.

Economic and earnings calendar

Monday – Chicago Fed National Activity Index. Foreign Affairs Council to the European Council. Quarterly figures from Nike, Tencent and Salzgitter.

Tuesday –  Weekly change in US API Crude Oil Inventory. Quarterly figures from Adobe and Neogen.

Wednesday – Eurozone Investor Confidence Index (March). ECB non-monetary meeting. Quarterly figures from General Mills and Altice.

Thursday – Manufacturing and Services PMI in France, Germany, Eurozone and US (March). US weekly unemployment data. European Council meeting. Quarterly figures from CTS Eventim, Valneva, Esso and NIO.

Friday – Ifo Business Climate Index in Germany (March). Final GDP growth rate in Spain (Q4). Unemployment rate in France (February). European Council meeting. Quarterly figures from Freenet.

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

The BUX Breakdown was written by Clémentine Pougnet.

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.