Earnings look set to boost global equities

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.