Some of Oslo Børs’ biggest companies will be in the fire with the figures released this week, including three oil giants. Investment economists believe in good numbers.
Results season begins in Oslo Bors, the ECB releases its interest rate decision, and new inflation numbers are on the way in the USA.
These are some of the events of next week in the markets.
Here at home, Børsen’s oil majors, Equinor, Aker BP and Vår Energi, will be on fire with their quarterly results, while giants Meta, Alphabet and Amazon will open their accounting books on Wall Street.
– It will set the tone very well
Investment expert Mads Johanensen from Nordnet points out that companies that represent a significant portion of the market capitalization on the Oslo Stock Exchange report quarterly figures.
– It will set the tone itself when Equinor, Aker BP and the cyclicals present the numbers, he tells E24.
Analysts expect a sharp decline in Equinor’s profits
Johansson says oil and gas prices indicate strong profits at oil giants, but they are weaker than they were when gas prices skyrocketed last year.
– But I have faith that the numbers will probably be relatively good. The prospects for oil and gas prices remaining relatively high are also good, he says.
Close to the register
On the last day of the week, arms and technology company Kongsberg Gruppen presents its numbers for the third quarter.
-Demand is expected to reach a record high during the quarter, and both bottom line and bottom line are expected to rise, says portfolio manager Karen Busch at Storebrand to E24.
It notes that the company has received large contracts related to the delivery to Poland and equipment for F-35 fighter aircraft, among other things.
– The Defense Division also signed a major framework agreement with the US Army. This is not recorded in the order book until the order is actually issued, but is further confirmation of increased defense investments in NATO countries in the future.
– Less attractive
Hydrogen company Nel will also release the figures next week.
– The picture of interest rates today, coupled with very high global uncertainty High betaHigh betaWhich has high risksBush says growth companies are less attractive.
Neal is among the companies that have seen this, says the portfolio manager, and points out that the stock is down nearly 60 percent since its peak in February.
Bush expects Neil’s numbers for the third quarter to be somewhat similar to the previous quarter. Then the company made another loss, but at the same time reported increased demand.
Since this summer, several brokerage firms have lowered their recommendations and adjusted their price targets for the stock.
– He might be scared away
Two of the main macro events this week are the European Central Bank (ESB) interest rate decision and the PCE inflation numbers from the US.
The latter, the Fed’s preferred method of measuring inflation, will arrive on Friday. In August, the personal consumption expenditures inflation rate was 3.5 percent.
– The market believes it will fall further to 3.2 percent. In this case, it means that the specter of inflation may have moved away in the United States, says Kerry M. Knudsen, chief economist at Sberbank 1SR.
He pointed out that if reality matches market expectations, he will confirm that the interest rate has reached its peak.
– This will pave the way for discussion about the first interest rate decrease. Historically, we’ve seen interest rate peaks rarely last longer than six months, and in the U.S. they’re often shorter than that, Knudsen says.
It is closely followed by Norges Bank
The European Central Bank has raised interest rates sharply to combat high price growth, like other central banks around the world. The central bank is scheduled to announce its decision on the interest rate on Thursday.
The big debate is whether the European Union has reached peak interest rates or not. Although they have less debt and lower floating interest rates than in Norway, interest rates also influence the EU area, Knudsen says.
The interest rate in the euro zone is now 4 percent. Economists expect it to remain unchanged at this meeting, according to Bloomberg.
– The most interesting thing is whether the central bank governor gives signals about whether there will be further jumps in interest rates – or whether they can expect the first drop in interest rates soon.
Knudsen says he’s referring directly to the Norwegian Interest rate pathInterest rate pathNorges Bank technical forecasts for future interest rates.
– He says that Norges Bank is watching with controversial eyes what signals the central bank governor will now give (ed note by Christine Lagarde from ESB).
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