G
lobal equities traders are hoping fourth quarter earnings reports do not spoil the positive momentum built by a dovish Federal Reserve.
Global equities have been calmer recently, after a volatile fourth quarter, amid easing trade tensions between the United Sates and China as well as expectations the US Fed may raise interest rates only twice compared to the earlier expectations of three.
US equity indices have been staging a comeback, witnessing their best gains so far in years in January.
Higher rates
Last week, the Dow Jones Industrial Average rose 2.4 per cent, while the S&P 500 added 2.54 per cent and the Nasdaq gained 3.45 per cent.
“I’m not expecting any big surprises from the largest US banks when they report fourth quarter earnings next week — rather, mostly more of the same. But, for the fullyear 2018, I suspect we’ll hear margins have mostly benefited from higher rates. The good news is the US money centres have diversified businesses, and while certainly exposed to markets, have