Head of Equity Strategy, Saxo Bank Group
Summary: Global equity markets are still marching higher although April has been a bit choppy. Overall, though, Q4's wall of worry has been replaced by complacency about the many problems in the global economy.
The Q1 earnings season is in full swing and while the US earnings positive ratio is 79% operating profit (EBITDA) is slowing down to the lowest growth levels since Q3 2016. This was obviously expected due to the difference between macro numbers and earnings but more importantly the outlook has not surprised substantially to the upside. For now the earnings season has mostly been neutral to equities. This earnings week is all about technology earnings with releases from Microsoft, Intel, PayPal, Twitter, Facebook, Google and Amazon.