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.
USD/JPY keeps a slight bounce of its 100-day moving average
2021-02-12 • 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.
XAU/USD: Gold after further weakness is trading below 23.6% retracement area.
US Market View
World shares dipped on Friday as investors awaited progress towards more U.S. fiscal stimulus, while the dollar was set for a weekly loss. U.S. stocks are set to open with light profit-taking at the end of another broadly positive week, punctuated by bursts of retail investor frenzy. Central banks across the world are clearer of late that their policies will be accommodative even beyond the current emergency period and this is further supportive for risk assets.
Markets in China and most of Southeast Asia were closed for the Lunar New Year. China's stock and bond markets, foreign exchange and commodity futures markets are closed through Feb. 17 for the holiday.
U.S. weekly unemployment claims fell less than expected and core consumer prices rose at a slower pace, causing some traders to temper their optimism about the economic outlook. House Speaker Nancy Pelosi said the Democrats’ proposal for a $15 minimum wage will be in the final draft of the stimulus package when the House debates it. The proposal, if implemented, could have far-reaching impacts on the structure of consumer spending in the U.S., along with risks to low-wage employment.
The British economy contracted by the most in over 300 years last year due to a combination of the pandemic and lower business investment due to the Brexit uncertainty. The Russian ruble fell after Foreign Minister Sergey Lavrov said the country was ready to break off diplomatic relations with the European Union.
USA Key Point
- The USD is the strongest and the NZD is the weakest.
- Japan health minister says aim to give official approval to Pfizer vaccine as early as Sunday.
- Gold turns lower as the dollar firms.
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.