MacroScope

Hundreds of Bangladeshi investors have rioted on the streets of Dhaka in recent days over stock prices that have plunged nearly 18 percent since the start of the year. Police used batons and tear gas to break up protests that blocked roads around the country's main stock exchange.

If this sounds familiar, rewind back to 2008 to another part of the Indian subcontinent, when angry investors rampaged through the Karachi Stock Exchange after a series of precipitous share price falls.

In less developed markets, retail investors often bear the brunt of losses as they tend to account for the bulk of total investment rather than institutional players.

Seen to have greater resources to make more informed decisions than private individual investors, institutional investors account for roughly three-quarters of equity investment in the United States. Compare this to the leading emerging economy of China where they account for about half of the market.

The strength of emerging markets over the last two years, coupled with loose credit conditions, has lured many individual investors regardless of whether they possess the required nous for profitable risk-taking.

Five things to think about this week:

EARNINGS DELUGE
-- A heavy U.S. earnings week looms and the European reporting calendar is picking up. While more banks and financials will be reporting (e.g. Bank of America, Bank of New York Mellon, Credit Suisse and a trading update due from Barclays), results will start flowing from a wider range of sectors in both the U.S. and Europe (ranging from Apple and IBM to Glaxo SmithKline, Du Pont, Coca Cola). Health of the broader economy on display.

MACRO SIGNALS
-- The more mixed signals that earnings send, the more investors are likely to look to macro and other indicators as a cross-check of whether the stock market rebound is sustainable and whether the economy is anywhere near an inflexion point. Flash PMIs and Ifo for April will give an early indication of how economic activity was faring as Q2 got underway. Trade data from Japan is also due for release.

FISCAL HELP
 -- The UK budget on April 22 is expected to issue grim forecasts and extend a helping hand to some sectors, such as autos. The fiscal presentation will keep the spotlight on the limited room for budgetary manoeuvre in Britain and elsewhere with past bailouts and support measures leaving tough decisions to be made on public spending, taxes, etc.