Worst earnings season since 2011 awaits investors
The Q2 earnings season will be brutal and most likely deliver the worst earnings figures since late 2011. Investors have so far looked beyond the 'earnings valley' towards 2021 but will they continue to do so if companies continue to not providing an outlook? Read our preview to this year's Q2 US earnings season and get prepared for a some volatile weeks.
Market Quick Take - July 10, 2020
A surge in coronavirus cases and deaths have soured the risk sentiment ahead of the weekend. The S&P 500 trades near the low of the week, crude oil extending its losses on demand concerns while gold has struggled to ignite fresh buying momentum above $1800/oz. The dollar once again acting as the go-to currency while bond yields dropped in response to a well-received 30-year debt auction. An eight-day buying frenzy in Chinese stocks paused with Beijing showing some unease over the speed of the recent rally.
Podcast: Chinese equities jumps to 2015 levels and gold blast beyond 1,800
Just as we thought risk was headed lower things have reversed across equities with US technology stocks extending momentum and Chinese equities jumping higher again today reaching highest levels since 2015. Gold has staged a strong and convincing breakout of the 1,800 level with lower real yields and rising uncertainty over COVID-19 outlook driving the momentum. EURUSD is also higher with the 1.1400 potentially in sight and especially if we get strong initial jobless claims. Today with Peter Garnry on equities.
Market Quick Take - July 9, 2020
Risk is bouncing back broadly in equities but the real show is in Chinese equities, US technology stocks and then gold which has managed to stage a convincing breakout above 1,800, which will most likely attract trend-following CTA hedge funds adding more fuel to the momentum.