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: vulnerable for further weakness
2020-11-25 • Updated
Ichimoku Kinko Hyo
EUR/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 has broken down all the retracements areas, which warns of further weakness.
EU Market View
Most major Asian equity markets traded positively as the region took impetus from the record-setting session in the US where the S&P 500 notched a record close. US Treasury Secretary Mnuchin said he will place the USD 455bln of unspent CARES Act money in a general fund, which would need congressional approval to be utilized. Looking ahead, highlights from the macroeconomic calendar include US Durable Goods, GDP (2nd), Core PCE Prelim, University of Michigan Survey, ECB Financial Stability Review, UK Chancellor Sunak November Update, FOMC Minutes.
EU Key Point
- Tokyo governor Koike says to ask bars and restaurants to close by 10 pm starting from Saturday
- ECB's Mersch supports that It will probably be difficult to maintain positive growth going into Q4
- Germany reports the deadliest day of the virus pandemic, another 18 633 new cases
- Trump is expected to address a meeting Wednesday US time on his election fraud
- Federal Open Market Committee November meeting minutes due Wednesday
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.