Earnings and data beats boost Wall Street
FX Trader, Loonieviews.net
Summary: Wall Street opened in positive territory following the lead of European bourses. An extra boost was delivered by a pair of unexpectedly strong corporate earnings reports that kicked off the US earnings season with gusto.
JPMorgan Chase (JPM: NYSE) did its part to improve the outlook for Q 1 earnings. The company beat profit and earnings estimates, posting record first-quarter results. Profit was $9.18 billion, or $2.65/share, easily beating analyst estimates of $2.35/share. The stock rose 4.12% in early trading. Wells Fargo’s (WFC: NYSE) results didn’t set a record, but they also beat forecast, earning $1.20/share of $21.6 billion. WFC shares are up 1.37% as of 13:50 GMT.
Chevron (CVX: NYSE) took a bite out of the US energy sector. The oil giant announced plans to swallow Anadarko Petroleum (APC: NYSE) for $33.0 billion in cash and stock. Traders were not very enamoured by the news and CVX is down 5.39% as of 1355 GMT.
The US dollar is lower against the commodity bloc currencies and the British pound in choppy New York trading. EURUSD retreated from its New York peak of 1.1322 after comments from European Central Bank chief economist Peter Praet echoed Mario Draghi’s remarks about the need for an accommodative ECB monetary policy.
The week ahead will be short but crammed with data. Monday will be quiet, but USDCAD traders will want to study the Business Outlook Survey for some insight into the Bank of Canada’s thinking. The Reserve Bank of Australia minutes may give AUDUSD traders a better understanding of the degree of dovishness at the central bank.
Tuesday, UK employment data should take control of GBPUSD movements as the article 50 extension means “no-deal “Brexit fears will diminish for the time being.
Wednesday is a data-laden day. New Zealand CPI, Japan Trade, China Retail Sales and CPI data from the UK, Eurozone and Canada should keep traders on their toes.
Thursday’s data includes Australia Unemployment, Eurozone Manufacturing PMI. UK and US Retail Sales reports are also on tap.
Friday, US traders will be lonely as most other markets are closed for Good Friday.
Chart: USDX highlighting lack of FX volatility for past two weeks
Quarterly Outlook Q2 2022
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Productivity and innovation have never been more importantAs the world economy hits physical limits and central banks tighten their belts, could equities be facing a 10-15% downside?
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.