Earnings season is a crucial time for investors and analysts, as it provides insights into how well companies have performed over the past quarter and gives indications of their future earnings. In 2023, expectations for US Q1 earnings were low due to economic challenges and rising interest rates. Surprisingly, many companies beat these low expectations, with 75% of S&P 500 companies surpassing forecasts.
Dollar lower, risk shrugs off stimulus worries
2020-12-23 • Updated
Ichimoku Kinko Hyo
EUR/JPY: The pair is trading below the cloud. A downward pressure would lead the pair to exit further the cloud, confirming a bearish outlook.
XAU/USD: Gold bulls try to remain above the critical retracement area of 38.2%.
US Market View
U.S. stocks are set to open moderately higher, with signs of the market slowing down ahead of the Christmas holiday. France agreed to reopen its border with the U.K., after sealing it at the weekend in response to the discovery of a new and more contagious variant of the Covid-19 virus.
Crude oil prices edged higher overnight, rebounding after a surprise build in U.S. inventories last week. The American Petroleum Industry estimated that crude stockpiles rose 2.7 million barrels last week, the sixth straight weekly increase and the biggest in four weeks
USA Key Point
- EU member states have started to prepare for provisional application of UK deal
- US November prelim durable goods orders +0.9% vs +0.6% expected
- Canada October GDP +0.4% m/m vs +0.3% expected
- The NZD is the strongest and the CHF is the weakest
When I started trading stocks a few years ago, I often needed to pay more attention to my technical analysis skills and trust that the market would play fair according to my analysis. I have since discovered that the safer approach to trading stocks is to, more often than not, seek out investing opportunities - that is, catching stock commodities with a potential to rise.
The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
The past several weeks have been a real triumph for the bulls in the oil market. The Brent spot price grew by 8.5% during the last month.
Gold prices are rising for three consecutive days ahead of the Federal Reserve (Fed) interest rate decision, which is expected to remain unchanged due to declining inflation and a positive economic outlook. Investors are keen on the Fed's interest rate guidance, fearing a hawkish stance that could trigger market risk aversion.
Amid concerns of a Chinese economic slowdown, reports of declining investment often overlook China's efficient investment strategy in emerging sectors for long-term growth. China has taken measures to stabilize foreign and private sector investments, like reducing the reserve requirement ratio to boost investor confidence.