Earnings season is in full swing. What will the week bring?

Last week in the US was quite mixed – the market received another batch of data pointing to ongoing disinflation and slowdown in the economy, but data from the US labor market remained surprisingly strong. The noticeable decline in the producer inflation index confirms that the lower costs of energy and raw materials are a disinflationary impulse, just as they previously fueled inflation. US retail sales data also turned out to be weaker, suggesting that perhaps US consumers have lowered their demand, which should further help Fed in fighting inflation.

Earnings season on Wall Street

The Federal Reserve could, in theory, admit that the 2022 policy of rapid interest rate increases is working and it is time to think about ending the cycle. However, a strong labor market and low unemployment may still lead to a new wave of price increases. Poland is in a slightly different situation, where the wage dynamics in the economy slowed down to +10,3%, which means that in real terms the wage fund is falling the fastest since the global financial crisis. If the following months deepen this trend, the risk of a greater slowdown in Poland will increase. Meanwhile, investors are waiting with hope for Wednesday's release of Tesla's quarterly report. Elon Musk's company expects an increase in sales volume by over 50%, although analysts' forecasts are less optimistic.

We invite you to a meeting with the Chief Economist XTB Przemysław Kwiecień, PhD, in which he will focus on the key topic of this week - the results season is gaining momentum.

In today's video:

• What next for the labor market in Poland?
• Tesla to dominate earnings week?
• What is the current sentiment of market participants?

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In addition, due to the very dynamic situation in the world, additional ones will be made available raports Video on the impact of war, pandemic and economic crisis on the global economy.

About the host

Dr Przemysław Kwiecień - Chief economist X-Trade Brokers. Doctor of Economics at the University of Warsaw, graduate of the University of Warsaw and London Metropolitan University (MSc). Holder of the prestigious CFA certificate. He has been working for XTB since 2007, previously he gained experience as an advisor to the Minister of Finance, Mirosław Gronicki, and an economist at Bank Millennium. At XTB, he manages the Analysis Department.

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