Earnings Watch: Springtime has arrived for earnings
Head of Equity Strategy
Summary: Equities have steamed higher in the past few months, powered by dovish monetary policy, trade deal optimism and improving Asian macro figures. But could earnings estimates
downgrades indicate that the train is now slowing down?
The table below shows next week’s releases from the 30 largest companies among the 2,000 companies we track during the earnings season. As usual the focus will be on Friday’s earnings among US banks such as JPMorgan Chase and Wells Fargo. With the recent US yield curve inversion investors would like strong outlooks from management to offset negative earnings expectations based on yield curve inversion.
Perhaps next week’s most interesting earnings release might come from an obscure corner of the global equity market. The Swedish investment company Industrivärden reports Q1 earnings on Tuesday. The company has holdings in many of Sweden’s largest publicly listed industrials and as such has a good feeling about the outlook for manufacturing. Sweden is one of the more cyclical economies in Europe and Industrivärden’s portfolio companies have broad international exposure. It might be worth listening to what the Swedes see in the manufacturing part of the economy.
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.