The meetings of the three main central banks are expected this week

Despite the correction on Friday, the S&P 500 ended higher for the 4th consecutive week. The main positive factors were the negotiations between US President Donald Trump and European Commission President Jean-Claude Juncker on the terms of mutual trade. They ended successfully on Thursday, July 26. The United States and the European Union agreed to work together to remove tariffs on manufactured goods and increase exports of liquefied natural gas and soybean from the United States to Europe. At the same time, the US refused to increase import duties on European cars.

The reporting season passes very successfully in the US. Investors expect a 22% increase in the aggregate profit of companies from the S&P 500 list. Whereas, at the beginning of the reporting season on July 1, only 20% increase was forecasted. This week, the publication of quarterly indicators of another 140 US companies is expected. Apparently, the main attention will be focused on the reporting of Apple, which will be released on Wednesday, August 1.

The growth of the aggregate profit of companies from the European stock index STOXX 600 is expected to be 8.5%. As we can see, this is less than in the US, but nevertheless, the stock indices of the EU countries are tend to rise. For example, over the last week, the German DAX rose by 2.4% and overtook both the S&P 500 and the Dow Jones. This week, the main event in the Eurozone will be the publication of data on the unemployment rate and inflation for July and the GDP growth for the 2nd quarter. It is expected that the data will be released on Tuesday, July 31.