Stock market set for another uneventful week: tech sector faces the Unitree IPO test
A week of subdued trading, with the focus on the Chinese tech group’s stock market debut and on the signals from the Fed minutes and European inflation figures.
With the week around 15 August having passed without any major surprises, against a backdrop of subdued trading and few macroeconomic figures, investors are looking ahead to the week starting tomorrow, which is likely to follow a similar pattern.
Following the US inflation and producer price data released in recent days, which have dispelled speculation of a rate rise by the Federal Reserve (with consumer prices in line with expectations and producer prices better than forecast), further clues may emerge from the minutes of the latest meeting of the FOMC, the Fed’s monetary policy arm, due to be released on Wednesday – the same day that Eurozone inflation figures are also due to be published.
The minutes may shed further light on the divergence of views amongst Committee members regarding whether to proceed with further interest rate rises in 2026 (Fed Funds futures currently price in a 31 per cent probability of a 25 basis point rise).
The issues that have dominated the headlines in recent weeks will continue to capture attention: tensions in the Middle East, with the deadlock in the Strait of Hormuz showing no sign of resolution; the resulting fluctuations in crude oil prices, with Brent briefly rising above $90 before pulling back, and investor concerns, which, however, have not prevented the S&P 500 and continental indices from flirting with record highs (the FTSE MIB, for example, set an all-time intraday record above the psychological threshold of 54,000 points).
On the corporate front, the quarterly results season is now drawing to a close. Among the most significant announcements are the results from the American retail giant, Walmart, and those from the Chinese tech giant, Alibaba, both of which are due on Thursday.
