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.
EUR/USD eyes 50-day SMA after Monday's surge
2020-10-20 • Updated
Ichimoku Kinko Hyo
AUD/JPY: The pair is trading in a bearish sentiment below the cloud. The currency pair has just surpassed the Kijun-sen and the Tenkan-sen, confirming a bearish momentum.
XAU/USD: Gold consolidates at 38.2% retracement area. The upcoming stimulus should help gold to move higher.
EU Market View
European stock markets are seen opening a little lower Tuesday, weighed by weakness on Wall Street as time begins to run out on a new U.S. stimulus package while European governments continue to tighten public health measures to stop the spread of Covid-19. Nancy Pelosi said a stimulus package must be agreed in the next 48 hours if it is to pass before the election, as the Democratic speaker of the House of Representatives turned up the heat on senior Republicans over coronavirus aid. Ms Pelosi will meet Steven Mnuchin, the Treasury secretary, on Monday as the two look to thrash out differences over proposed relief measures which could amount to about $2tn.
Looking ahead, highlights from the macroeconomic calendar include US Building Permits/Housing Starts, Fed’s Williams, Quarles and Evans and supply from Germany. Earnings include UBS, Bellway, Phillip Morris, P&G, Lockheed Martin, Netflix.
EU Key Point
- Germany September PPI comes at +0.4% vs -0.1% m/m than expected
- Germany reports 6,868 new daily coronavirus cases in latest update today
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.