Holiday Roundup

In this buzz: Q4 earnings announcements; Equities; FX traders shorting USD; BlackRock’s vice chairman ; World Economic Forum in Davos and more …

• U.S. banks and the stocks are closed in observance of Monday’s MLK Jr. federal holiday.
• European stocks meanwhile continued the new year rally. It’s likely to be another important week for equities when trading resumes on Tuesday.

Q4 earnings announcements:
For one thing, we enter week two of Q4 earnings announcements.

• Slower to negative earnings growth is widely anticipated as concerns about the toll higher prices have taken on consumers abound.
• Couple earnings with a drop in the dollars (and rise in the Yen), as FX traders shorting the USD becomes the in-vogue trade as the Fed is seen as slowing rate hikes.

Rate Cut Bets:
As mentioned previously, some traders have started placing rate cut bets. Not every believes the Fed is going to switch from raising to lowering rates anytime soon. BlackRock’s vice chairman thinks there is virtually no chance of easing this year, “I think the market has got that wrong.”

World Economic Forum in Davos
Ooh, this week is also the World Economic Forum in Davos, Switzerland; you know, the place where the elite like to retreat to greet and meet. It’s where global business leaders, economists and politicians get together to make bold predictions that seldom are correct. For example, at last year’s forum, Brett Harrison, then president of FTX U.S. that the company was in a “very good spot” capital wise.

So maybe ignore Davos after all and focus on earnings.