The Results Season Weighs in the Markets

The Results Season Weighs in the Markets

By: DailyForex

Asian markets were trading on a mixed note to start the week, while traders are watching the US earnings season, which will begin in earnest this week. Thomson Reuters predicts S & P earnings rose 18.6 percent in the first quarter of 2018 compared to the first quarter of 2017, the biggest increase in 7 years. The collection of earnings before the earnings reports kept the markets pointing upwards in general.

The Shanghai Composite suffered the most on Monday, falling 1.62 percent at 2:20 pm HK / SIN. Hong Kong’s Hang Seng index was not far behind, down 1.59 percent, while the Nikkei 225 rose 0.26 percent and the ASX 200 rose 0.21 percent.

This week will be full of news. US retail sales are published later Monday and 15 members of the Federal Reserve will make statements. On Tuesday, China’s gross domestic product report will be published.

The FAANG shares have been under pressure recently, with Facebook under great pressure because its founder, Mark Zuckerberg, faced allegations of breach of its privacy policy. Traders expect positive first-quarter earnings to reduce worries that led to the sell-off of FAANG shares last week. Also weighing on the stock is the fear of commercial war between the US and China, since China is a great source of income for Apple. Although fears about the trade war have cooled substantially since the end of last week, traders are still worried about what might happen because of President Trump’s tendency towards volatility.

Forex movements

On Monday, the dollar traded mostly lower, moving the dollar index down 0.09 percent to 89.76 .DXY. The dollar fell against the euro to 1.2332, leaving 0.07 percent against the yen at 107.26. The dollar also fell against the pound sterling and the Canadian dollar, although it made slight gains against the Swiss franc.

Leave a comment

Send a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.