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5 Things to watch in the markets this week

Published by

March 2, 2023 11:10 AM
(GMT+2)

Concerns over a pandemic resurgence in Europe, retail earnings, and the latest economic slowdown in China remain to the fore in the coming week.Here’s what you need to know in this week’s markets: 1. Retail earningsQuarterly earnings results from major retailers, including Home Depot (NYSE:HD), Walmart (NYSE:WMT), Target (NYSE:TGT), and Macy’s (NYSE:M), will be monitored this week.While third-quarter earnings continue to wind down, investors will get an additional update on the strength of consumer spending this week.Third-quarter earnings season has predominantly been upbeat. As of Friday, 459 of the companies in the S&P500 have reported, of which 80% of earnings beat analysts’ forecasts.2. China SlowdownData on Monday, which includes reports on retail sales, fixed-asset investment, and industrial production, is expected to confirm the weakening of the recovery of China’s economy.The country’s recovery has been hit by an aggressive approach to containing Covid-19 outbreaks, a massive debt crisis in the country’s real estate sector, and an energy disaster that has weighed on manufacturing activity.Treasury Secretary Janet Yellen said that the US government is closely monitoring developments in China while analysts think the country’s central bank might take a cautious approach to loosen monetary policy to bolster the economy.3. Pandemic resurgence hits EuropeCovid-19 cases are surging again in Europe, and outbreaks are among the most severe in the world. Several countries, including the Netherlands and the Czech Republic, are implementing new restrictions to slow the spread.Europe accounts for more than half of the average 7-day infections globally, and new cases have more than doubled in 13 of 45 countries.Data shows that the countries recording the biggest rebounds are lagging in vaccinations and, as a result, Germany reintroduced free Covid-19 tests. Moreover, Austria will decide whether to impose a lockdown on people who are not vaccinated.4. AMC officially accepts cryptocurrenciesAdam Aron, The CEO of Global cinema chain AMC Entertainment (NYSE:AMC), confirmed its new development of accepting Bitcoin (BTC), Ethereum (ETH), and other popular altcoins as a form of payment in its outlets.Customers can now buy tickets and other AMC offerings with the more common cryptocurrencies. Consumers will also be able to buy gift cards loaded with Dogecoin (DOGE) and will be the next integrated cryptocurrency, according to Aron.5. Musk is selling more Tesla sharesIn two additional filings, Musk disclosed early on Friday that he had sold another $687.3 million worth of stock on Thursday. That brings his sales of stock for the week to 5.2 million shares for a total of $5.8 billion.In a Twitter poll a week ago, Musk asked the public if he should be selling 10% of his hares which resulted in 58% of people who agreed that he should sell.However, it is more likely that he is selling shares as he will soon face a massive federal tax bill of at least $11 billion, and will need the cash in order to pay.To learn more about Stock Investments visit MEXEM.

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