Never miss a story from Peter Hanks

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Peter Hanks

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

DJI

Dow Jones, Nasdaq 100, S&P 500, DAX 30 Fundamental Forecast:

Dow Jones, Nasdaq 100, S&P 500 Fundamental Forecast: Earnings Arrive

After doubling down on a dovish policy path, the Dow Jones, Nasdaq 100 and S&P 500 jogged to record highs. With trade wars out of focus and monetary policy effectively locked in ahead of July’s meeting, earnings season will look to take the reigns as the driving fundamental force behind the three major US indices. In the week ahead, the country’s biggest banks will kick off the start of the season and could highlight the impact of a lower Federal Funds rate.

Dow Jones, Nasdaq 100, S&P 500, DAX 30 Fundamental Forecast

As a key factor in determining a financial institution’s profit margin, the prospect of a lower Federal Funds rate could result in tempered forecasts for upcoming quarters which may momentarily weigh on share prices in the financial sector. Consequently, the Dow Jones will take its cues from Goldman Sachs (GS) and JP Morgan Chase (JPM) on Tuesday as the two banks make up over 8% of the Index.

Dow Jones Price Chart: 4 - Hour Time Frame (May – July) (Chart 1)

DJI

On the other hand, the Nasdaq 100 will take its cues from the first FAANG member to report – Netflix (NFLX). Netflix and its FAANG companions are afforded significant influence on tech sentiment and a string of poor earnings from the group could depress the outlook for the whole sector. To that end, Netflix will be an important barometer for the rest of the group – but new entrants to the streaming space may cloud the company’s outlook. Check out @PeterHanksFX for equity coverage and earnings insight.

Nasdaq 100 Price Chart: 4 – Hour Time Frame (May – July) (Chart 2)

NDX

Check out our NEW Q3 Forecasts for equities, Gold, oil and more.

DAX 30 Fundamental Forecast

While the US markets have a full plate, the DAX 30 may find itself longing for drivers. With an exceedingly sparse economic calendar, the German equity index may derive influence from Chinese GDP data on Monday and economic survey expectations on Tuesday. Further, the Index’s statistically significant positive correlation with the S&P 500 may see US earnings extend their influence across the Atlantic.

DAX 30 Price Chart: 4 – Hour Time Frame (June - July) (Chart 3)

DAX

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Does the Russell 2000 to S&P 500 Ratio Suggest a Coming Recession?

DailyFX forecasts on a variety of currencies such as the US Dollar or the Euro are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.