dirhams & dollars

Will earnings week be overshadowed by a US government shutdown?

Political infighting in Washington seems likely to tarnish a solid earnings period

22:18 January 14, 2018

We’ve got some good news and some bad news.

The good news is it’s the first week of the earnings season. So get ready for a rush of company results, including here in the UAE, starting with the banking sector. Spoiler alert: it’s supposed to be a very good week.

Also, on Monday Abu Dhabi Sustainability Week, which includes the World Future Energy Summit, gets under way. While the focus will be on sustainable energy, we’ll also likely hear about Opec and its oil cuts, which so far seem to be working well to support prices.

The bad news? Any good news – and market effect – could be overshadowed by a possible shutdown of the US government, who’s ability to pass a working budget seems hamstrung by all the political infighting in Washington. Needless to say, markets aren’t usually too pleased with government shutdowns, because it means people don’t get paid.