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Welcome to your guide to the week ahead in the markets.

Has COVID-19 peaked?

Markets will of course remain susceptible to news surrounding the COVID-19 outbreak over the coming week. The number of new cases recorded daily had slowed towards the end of last week, but an outbreak in South Korea reignited fears of a global spread. Over 75,000 cases and more than 2,100 fatalities had been reported by the end of the week. An acceleration of cases outside of China could prompt further flights to safety, but otherwise the market seems relatively confident that the outbreak is contained and that stimulus from Beijing and the PBoC will soften the economic hit.

US GDP, durable goods, personal spending

Members of the Federal Reserve were feeling confident about the state of the US economy during their last policy meeting, according to last week’s minutes. The FOMC thinks the outlook has gotten “stronger”, and the coming week offers plenty of data to either challenge or support that view. CB confidence is expected to have ticked higher in January, durable goods orders to have fallen –2%, and core PCE to remain stable on the month. While personal income growth is predicted to have risen, spending is likely to have weakened. A second estimate of Q4 GDP is likely to hold steady at 2.1%.

Eurozone, Germany confidence, flash inflation

The euro could be facing more headwinds this week after sliding to multi-week lows against the pound and multi-year lows against the dollar last week. Sentiment data from Germany and the bloc is expected to soften, mirroring market concerns over the health of the bloc’s economy following some poor industrial data. Flash inflation figures for the Eurozone and Germany are unlikely to make inspiring reading; even if price growth in Germany has strengthened towards the ECB target again, the wider Eurozone reading remains far behind.

Earnings: Best Buy, Bayer

Best Buy reports earnings before the open on February 27th. The stock has put in a strong performance over the last six months, rallying around 40% compared to 15% gains for the retail-wholesale sector and 18% for the S&P 500 index during the same period. Best Buy has delivered 11 earnings beats in the past 12 quarters and beat expectations by over 9% in each of the past two quarters.

Bayer also reports earnings on the 27th. The stock is up 45% from the June 2019 low of 51.90, and was last trading around 75.00.

FTSE in focus on deluge of FY results

Earnings reports will be a key driver of UK stocks over the coming days. A deluge of full-year results for 2019 from blue-chips including Standard Chartered, British American Tobacco, Rio Tinto, Persimmon, Taylor Wimpey, RSA Insurance and Meggitt provide clear risks for the FTSE 100 index over the coming sessions. A slew of reports from FTSE 250 constituents throughout the week could also affect the general sentiment around UK plc.

Heads-Up on Earnings

The following companies are set to publish their quarterly earnings reports this week:

24th Feb – 09.00 GMTGerman IFO Business Climate Index 
24th FebAssociated British Foods Pre-Close Trading Statement 
25th Feb – 12.00 GMTManchester UnitedQ2 2020
25th Feb – Pre-MarketHome DepotQ4 2019
26th Feb – 06.00 GMTRio TintoQ4 2019
26th Feb – 08.00 GMTDanoneQ4 2019
26th FebTaylor WimpeyFY 2019
26th Feb – Pre-MarketLowe’s CompaniesQ4 2019
26th Feb – 15.30 GMTUS EIA Crude Oil Inventories 
27th Feb – 00.30 GMTAustralia Private Capital Expenditure 
27th Feb – 04.15 GMTStandard CharteredQ4 2019
27th Feb – 06.30 GMTBayerQ4 2019
27th FebPersimmonQ4 2019
27th FebRSA InsuranceFY 2019
27th Feb – 10.00 GMTEurozone Sentiment Survey Results (Consmer, Business, etc) 
27th Feb – After-MarketAutodeskQ4 2020
27th Feb – 13.30 GMTUS Q4 GDP 2nd Estimate, Durable Goods Orders 
27th Feb – 15.30 GMTUS EIA Natural Gas Storage 
27th Feb – Pre-MarketBest BuyQ4 2020
28th Feb – 10.00 GMTEurozone Preliminary Inflation 
28th Feb – 12.30 GMTUS PCE Index, Personal Spending, Personal Income 
28th Feb – 13.00 GMTGermany Preliminary Inflation 

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