Stock markets cautious before the start of season reports
Movements in the equity markets cautious ahead of the start of the next season of earnings reports for the 1st quarter of 2019. Futures for the American currency point to moderately lower open in the beginning of the week. The General view was that this should be the first quarter of negative earnings growth in 2016.
Expectations for profit in the last quarter fell sharply amid signs of slowing economic growth. If the S&P 500 do not justify the expectations, it can lead to a sharp decline in other indices. Industrial Dow Jones is a leader in the major indexes, the S&P 500 and NASDAQ Composite index lost about 0.1%.
In trade news from China reported that there had been “new developments”. This news follows the completion last week of trade talks at the highest level in Washington. Key issues still to be resolved include the forced transfer of technology, handling of intellectual property and the trade balance. Next week the reporting season starts to gain momentum with reports of several dozen important companies in the S&P 500.
European stock markets show mixed dynamics. Investors in the region, cautious ahead of events this week and an upcoming Brexit. Brexit is scheduled for April 12, a Friday, and it can only be avoided if the British Parliament will reach consensus on the agreement Theresa may or the EU will be given other release dates. Theresa may is expected in Brussels at the end of this week for a summit of EU leaders, she is expected to formally ask for a new delay.
The FTSE 100 and the French CAC rose slightly early in the week, while Germany’s DAX fell. Shares of Euronext, the stock exchanges of France increased after it was approved the acquisition of the Norwegian stock exchange. Shares of Safran, a supplier of engines for the Boeing Max8, fell after Boeing reduced production prospects of its most popular airliner.
Strong data on the labour force Friday helped to lift U.S. stocks to new highs last week. However, positive mood did not extend to Asia, where indexes were without direction in trading on Monday. The Nikkei has fallen by -0,20%, while the Shanghai Composite index fell to -0.05%, while the Hang Seng and Kospi showed a slight increase. Traders in the region will follow the protocols of the FOMC on Wednesday, information on trade and income.
_____________ The material is provided,
The Company FXOpen