Weekly Outlook (20-24 April)

INSIGHT
April 21, 2020

The COVID-19 developments and its effect on the global economy will remain a focal point among investors in a busy week ahead.

Major indices registered their first back-to-back week of gains since the week ending February 14, before the coronavirus-related selloff began. Nevertheless, market strategists alert that there could be more volatility ahead until meaningful progress is made in containing COVID-19 or a vaccine is found.

As of Sunday evening, there were more than 2.3 million confirmed cases and 164,000 deaths globally, according to Johns Hopkins University data. In the U.S., there were more than 750,000 cases and 40,000 deaths.

Earnings season is underway and, on Tuesday, Netflix reports Q1 results. Amid plenty of speculation as to how the company would be able to play with Disney+ and Apple TV+, Q4 profit beat consensus expectations. Its guidance for Q1 expects to add 7m new subscribers while generating revenue of $5.73bn, and profit of $1.66c a share. With the lockdown keeping people at home, it would be a surprise if Netflix didn’t comfortably beat expectations for Q1, despite it being one of the most expensive options in the TV streaming space.

US labour market suffered over the last four weeks. It’s hoped that the number of job losses in the US could start to pick up. With an unemployment rate likely to surge above 10% in next month’s non-farm payrolls report, US officials will be hoping that the claim numbers start to slow in the coming weeks.

In the UK labour market thing are not different. With 1m applications for universal credit over the past few weeks, the jobless claims number is expected to skyrocket next months.

Manufacturing & services flash PMIs in Germany/France/UK are likely to be worse in April, given the lockdown of the economies.

Key data to keep an eye on include:
• Tuesday: UK jobless claims (March), Netflix Q1 results
• Thursday: Germany/France/UK manufacturing & services flash PMIs (April), US weekly jobless claims
• Friday: UK retail sales (March): Collapse is expected for all types of retail, except for food and other supermarket sales.

Authored by

Leverage Shares

April 21, 2020

Category: Insights

Related Topics

The Tech Takeover

Growth Stocks: In search of value

Leverage Shares launches 28 new ETPs

FAAMG: One of the world’s leading economies

The value of an investment in ETPs may go down as well as up and past performance is not a reliable indicator of future performance. Trading in ETPs may not be suitable for all types of investors as they carry a high degree of risk. You may lose all of your initial investment. Only speculate with money you can afford to lose. Changes in exchange rates may also cause your investment to go up or down in value. Tax laws may be subject to change. Please ensure that you fully understand the risks involved. If in any doubt, please seek independent financial advice. Investors should refer to the section entitled “Risk Factors” in the relevant prospectus for further details of these and other risks associated with an investment in the securities offered by the Issuer.

This website has been approved as a financial promotion, for the purposes of section 21 of the Financial Services Market Act 2000 (FSMA), by Resolution Compliance Limited which is authorised and regulated by the Financial Conduct Authority (FRN:574048).

* DISCLAIMER: Interactive Brokers (U.K.) Limited is authorized and regulated by the Financial Conduct Authority, Firm Reference Number 208159. Registered address: 1 Carey Lane, Fifth floor, London EC2V 8AE, United Kingdom.

Interactive Brokers is not affiliated with and does not endorse or recommend any referrer partners, introducing brokers or financial advisors including Leverage Shares PLC. Interactive Brokers (U.K.) Limited, and its U.S. registered affiliate, Interactive Brokers LLC, provide execution and clearing services to customers of Leverage Shares PLC. None of the information contained herein constitutes a recommendation, offer, or solicitation of an offer by Interactive Brokers to buy, sell or hold any security, financial product or instrument or to engage in any specific investment strategy. Interactive Brokers makes no representation, and assumes no liability to the accuracy or completeness of the information provided on this website.

For more information regarding Interactive Brokers, please visit www.interactivebrokers.co.uk.

Leverage Shares