Earn­ings look set to boost global equities

Gulf News - - Markets -

other off­set­ting rev­enue driv­ers,” said Jon Cur­ran, se­nior in­vest­ment man­ager at Aberdeen Stan­dard In­vest­ment.

The US earn­ings sea­son will start with Cit­i­group ex­pected to an­nounce its fourth quar­ter earn­ings to­day, J.P. Mor­gan to­mor­row and Bank of Amer­ica and Gold­man Sachs on Wed­nes­day. Gen­er­ally earn­ings are ex­pected to be up nearly 15 per cent in the fourth quar­ter to De­cem­ber.

Pha­neen­dar Bhavaraju, head-FX and global mar­ket strat­egy at DIFC-reg­is­tered Ar­row Cap­i­tal said: “We ex­pect S&P to re­main range bound as earn­ings sea­son looms. Any de­cline in earn­ings mo­men­tum will lead S&P 500 to 2,300 lev­els.”

Bri­tain’s pound will also be watched as the UK prime min­is­ter’s Brus­sels-backed Brexit deal will be put to test in the House of Com­mons.

“Pound has bounced back on grow­ing ex­pec­ta­tions that UK may de­lay its exit. A no deal Brexit less likely but ex­treme sce­nar­ios can play out. Tech­ni­cally $1.2500 is a strong medium term sup­port level,” Bhavaraju said. Pound rose to its high­est level in Novem­ber on Fri­day. The pound rose half a per cent to $1.2831 against the dol­lar.

Gold, which has been ben­e­fit­ing from its safe-haven sta­tus, edged lower due to a re­ver­sal in the dol­lar.

The gold price on the in­ter­na­tional spot mar­ket was flat at $1,287.53 an ounce. “Clearly some profit-tak­ing should be ex­pected,” Fawad Raza­qzada, mar­ket an­a­lyst at Forex.com, said.

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