EN Down
Hi, user_no_name
Live Chat

Expect policy decisions from the RBA and BoE, a host more earnings reports, the US nonmanufacturing PMI, and of course the highly anticipated/dreaded April nonfarm payrolls report. Keep track of the biggest market-moving events with the Events Calendar in the Marketsx trading platform

Reserve Bank of Australia interest rate decision 

Data is tentatively showing that lockdown measures in Australia might have succeeded in flattening the curve of infections, and several states have already started relaxing social distancing rules.

The Reserve Bank of Australia has previously stated that it believes the economy will begin to rebound once the outbreak was contained, therefore it seems unlikely we will be getting any further stimulus announcements as a result of this week’s meeting. It’s too early to expect the board to start tightening again, but we could see some comments regarding plans to begin tapering the quantitative easing programme. 

Regeneron earnings 

Regeneron Pharmaceuticals is one of the leading companies in the race to find treatments and a vaccine for COVID-19. The stock is up 40% since the start of the year, and is a constituent of our Corona Blend. Analysts are expecting EPS of $5.99 per share – growth of 34.6% on the year. Revenue is forecast up 16% from the same period a year ago at $1.99 billion. 

US ISM Nonmanufacturing PMI 

Last month the US ISM Nonmanufacturing PMI fared much better than expected, clocking in at 52.5 versus the consensus forecast of 43.0. Companies reported a jump in supplier deliveries, with the sub–index leaping to 62.1 versus 52.4 the previous month. 

Digging further into numbers, however, it’s clear to see that this helped mask wider weakness. The employment index recorded the largest drop since 2008, tumbling from 55.6 to 47.0, and the business activity index dropped almost 10 points to 48.0. New export orders and imports also collapsed.

April’s report is likely to see the headline number more accurately reflecting the weakness in the sub-indices – some forecasts suggest a drop to as low as 32.0. 

Walt Disney earnings 

Disney’s latest earnings report will be more of a preview than the main event. The company’s second-quarter period ends just a couple of weeks after social distancing measures and business closures were enforced. Like so much of the current data and reports, the rule is to expect bad news now, and brace for even worse to come. 

Business closures and social distancing will have hit Disney from all directions, forcing closures of its parks, curtailing or delaying theatrical releases of its latest films, and hurting demand in its retail stores.

The effect has clearly been significant: the company has already announced that it would slash executive salaries. 

The one positive in the report is likely to be the strong performance of the company’s streaming service, Disney+. The service enjoyed a strong launch, and demand is likely to have been bolstered even further thanks to global lockdowns. 

Guidance for the next quarter won’t be able to answer all investor’s questions – such as whether parks will be able to reopen in time for the busy summer season – but will give details on how the company plans to endure these punishing conditions until the economy gets back to something that vaguely resembles normality. 


PayPal stock has been one of the most resilient of those belonging to the payment processing industry. The company is likely to benefit from a surge in online shopping and demand for online services.

However, PayPal has also announced various measures to support its smaller partners, such as deferring business loan payments and waving certain fees for small business customers who are most affected by the impact of COVID-19. This will hit the company’s bottom line and revenue growth is expected to be negative for the quarter.

Bank of England interest rate decision 

The Bank of England faces the same situation as the Fed and ECB – interest rates are already as low as policymakers are willing to go (for the time being, at least), so it’s unlikely we will see any change to the base rate on Thursday. We could see an increase in the size of the asset purchasing programme, however, or alterations to its short-term repo operations.

The BoE also publishes its latest Inflation Report, which will detail the expected hit to the UK economy from the coronavirus pandemic.  The latest decision and report will be announced at 06.00 UTC on Thursday May 7th, instead of the usual time of 11.00 UTC.

Nonfarm payrolls 

Last month, the nonfarm payrolls report showed a drop of 701,000 jobs in March. The unemployment rate leapt past expectations to 4.4%. The market reaction was muted, however, because everyone from economists to traders knew that there was far worse to come. 

Since the 21st of March, over 25 million Americans have filed jobless claims. March’s NFP may have been the worst report since 2009, but the numbers will seem trifling compared to those reported for April. 

We’ve seen recently that markets are able to shrug off backward-looking data even if the readings are dire. It was the fear of numbers like these, after all, that saw stock markets posting record declines in Q1.

It is also worth noting that, since late March, the number of Americans filing for new jobless claims has fallen each week, suggesting the worst of the job losses may be behind us. 

But there is a risk that the numbers will be so appalling that markets will have to rethink their already bearish forecasts. 

Heads-Up on Earnings 

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

Pre-Market 05-May Thompson Reuters – Q1 2020 
Pre-Market 05-May Regeneron Pharmaceuticals – Q1 2020 
12.00 UTC 05-May BNP Paribas – Q1 2020 
By 13.00 UTC 05-May Fiat Chrysler – Q1 2020 
After-Market 05-May Walt Disney – Q2 2020 
After-Market 05-May Activision Blizzard – Q1 2020 
After-Market 05-May Prudential Financial – Q1 2020 
After-Market 05-May Occidental Petroleum – Q1 2020 
Pre-Market (Europe) 06-May BMW – Q1 2020 
 06-May Credit Agricole – Q1 2020 
 06-May Societe Generale 
 06-May Shopify – Q1 2020 
Pre-Market 06-May General Motors – Q1 2020 
After-Market 06-May PayPal – Q1 2020 
After-Market 06-May T-Mobile US – Q1 2020 
After-Market 06-May Lyft – Q1 2020 
 07-May BT Group – Q4 2020 
Pre-Market 07-May Wheaton Precious Metals – Q1 2020 
 08-May Siemens – Q2 2020 


Highlights on XRay this Week 

07.15 UTC  Daily  European Morning Call  
09.00 UTC  Daily  Earnings Season Daily Special  
10.00 UTC  May 6th  Live Market Analysis with Neil Wilson  
12.20 UTC  May 8th  Platform Walkthrough 
12.30 UTC  May 8th  US Nonfarm Payrolls Live  


Key Economic Events 

Watch out for the biggest events on the economic calendar this week: 

08.15 – 09.00 UTC 04-May Finalised Eurozone Member / Bloc Manufacturing PMIs 
04.30 UTC 05-May Reserve Bank of Australia Interest Rate Decision 
14.00 UTC 05-May US ISM Nonmanufacturing PMI 
08.15 – 09.00 UTC 06-May Finalised Eurozone Member / Bloc Services PMIs 
14.30 UTC 06-May US EIA crude Oil Inventories 
01.30 UTC 07-May Australia Trade Balance 
01.45 UTC 07-May Caixin Services PMI 
10.00 UTC 07-May EU Economic Forecasts 
06.00 UTC 07-May Bank of England Interest Rate Decision 
12.30 UTC 07-May US Jobless Claims 
01.30 UTC 08-May Reserve Bank of Australia Monetary Policy Statement 
12.30 UTC 08-May US Nonfarm Payrolls / Unemployment Rate 

Latest news

Tesla shares poised for 6th straight loss as Cybertruck recalls begin

Friday, 19 April 2024


Tesla shares drop again as Cybertruck recalls begin

Citi issues new gold price forecast, sees yellow metal at $3000 by year-end

Friday, 19 April 2024


Citi updates gold price forecast to $3,000 by year-end

Magnificent Seven earnings take centre stage in the markets this week

Friday, 19 April 2024


Week ahead: Wall Street’s Magnificent Seven earnings are up

Oil and gold prices rallied as Israel launched a retaliatory strike on Iran

Thursday, 18 April 2024


Oil, gold price rallies on Iran blasts as Israel retaliates

Live Chat