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 slightly softer to start the session
2022-01-19 • Updated
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading above the cloud. An upward pressure would lead the pair to exit further the cloud, confirming a bullish outlook.
XAG/USD: Silver after a remarkable selloff is trading above the 23.6% retracement area.
EU Market View
Asian equity markets traded cautiously as the region struggled to break from the weak performance among global peers. EU is reportedly working on an Airbus (AIR FP) - Boeing (BA) trade offer for the upcoming Biden administration. European stock markets are seen opening largely unchanged Tuesday, after a suite of US Federal Reserve officials hinted that it could start reducing its monetary stimulus later this year. Global equity markets have posted strong gains over the last few weeks, boosted by stimulus from central banks and governments alike, and the idea that vaccinations were on their way. However, investors are now starting to weigh up whether valuations are becoming too stretched, especially with a global surge in Covid-19 cases, following the emergence of new highly transmissible strains of the virus.
Looking ahead, highlights from macroeconomic calendar include US NFIB Business Optimism, EIA STEO, Fed Discount Rate Minutes, BoE's Broadbent, Fed's Brainard, Kaplan, Mester, Rosengren, ECB's de Cos, supply from the UK and US. Three regional Fed Presidents -- Richmond's Tom Barkin, Atlanta's Raphael Bostic and Dallas' Robert Kaplan -- all hinted more or less clearly that the 'tapering' of bond purchases could begin toward the end of 2021. The Fed is currently pumping $120 billion a month into the economy through such asset purchases. Global equity markets have posted strong gains over the last few weeks, boosted by stimulus from central banks and governments alike, and the idea that vaccinations were on their way.
EU Key Point
- ECB's Schnabel supports that Inflation is not dead
- Germany reports 12 802 new coronavirus cases in latest update today
- Reuters is reporting that China plans a further Hong Kong crackdown
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.