This week is going to be all about trading stocks and equity markets, as the fallout from the poor US jobs report continues to give markets a shot in the arm.
Last week saw the start of earnings season in the US, with Alcoa reporting its third quarter numbers.
Expectations for earnings are not particularly good and, with a whole raft of companies reporting this week, investors will want to see an improvement on Alcoa’s weak numbers, or the next few weeks could be painful.
The other big stock story is SABMiller, which has been in discussions with US drinks giant AB InBev over a potential takeover.
Over the last couple of days, we have seen SABMiller reject some of the proposals, but yesterday saw an improved offer, which valued the company at $108bn.
This is the third time AB InBev has increased its offer, and we will all be waiting for the final deadline tomorrow to look for more developments.
It is not entirely up to SABMiller, however, as it will be the competition commission that decides what happens if an offer is accepted.
Glencore and the commodity rout is another story we must highlight.
Many have taken Glencore’s cut in zinc output as a sign that the commodity rout could well be over as producers finally reduce production.
However, I tend to think this is just a short-term measure and that any movements to the upside could well be met in the longer term with a lot more downside price action.
ETORO INVESTMENT ANALYST
Oil has been in the spotlight over the last few days, as a recent rally has seen US crude jump close to $50 a barrel.
Commodities had been struggling for a long time, however this now seems to have signalled a move to the upside. This is coinciding with a move in mining and oil stocks.
So as commodity prices start to put on a cautious recovery, it is worth keeping an eye on the big mining stocks like Rio Tinto, BHP Billiton and even some of the smaller ones such as Tullow Oil.
This becomes even more important after Alcoa missed its earnings number last week.