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Watch Out for Powell and Lagarde: 5 Keys to the Stock Market on Tuesday

Published 2022-05-17, 03:04 a/m
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By Laura Sánchez

Investing.com - The markets today will be closely watching statements from Jerome Powell, Chairman of the US Federal Reserve (Fed), and Christine Lagarde, his counterpart at the European Central Bank (ECB).

We will also see quarterly GDP data from the eurozone.

The corporate earnings season continues.

Brent is trading lower.

Cryptocurrencies are mixed this morning.

Here are the five factors that investors should take into account when making their decisions today:

1. Appearances by Powell and Lagarde

In the midst of investors' fears of a tightening of monetary policy by central banks, the market will be closely watching today the statements by Jerome Powell, Fed Chairman, scheduled for 02:00 pm ET (1800 GMT), and Christine Lagarde, President of the ECB, at 01:00 pm ET (1700 GMT).

Even though Powell has removed the possibility of a 75 basis point hike in the next meetings, the markets are not confident.

As for Lagarde, it remains to be seen whether a rate hike will be confirmed for the agency's July meeting.

2. Quarterly GDP in the Eurozone

This Tuesday, at 05:00 am ET (0900 GMT), we will know the quarterly Gross Domestic Product (GDP) data for the eurozone. A rise of 5.0% is expected.

3. Crypto, mixed

The cryptocurrency sector is trading mixed after last week's heavy losses following the collapse of Terra (LUNA). Bitcoin is trading at $30,000 and Ethereum at $2,000.

4. Asia and the US stock market

Positive signs today on the main Asian indices. Nikkei is up 0.4%. Hong Kong's Hang Seng is up 3.1% and the Shanghai Composite is up 0.6%.

On Wall Street, the market ended yesterday mixed. The S&P 500 (-0.39%), Nasdaq (-1.2%) and Dow Jones (+0.08%) closed mostly lower.

5. Macro data

The main macroeconomic references in Europe include Spain's trade balance, France's unemployment, Italy's CPI and the evolution of employment in the eurozone.

In the US we will see the Redbook retail sales index, weekly API crude oil stocks and several FOMC members will speak.

Follow the day's events on our economic calendar: https://ca.investing.com/economic-calendar/

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