US markets are holding up today, with technology companies leading the rise in the indexes. Investors are also gearing up for the reporting season, which begins in a week, and the US-China Phase I Deal is expected to be signed by the end of this week.
Apple, Microsoft and Tesla are pushing NASDAQ up, leading the indexes by the highest growth of the day.
Wall Street is gearing up for the reporting season, which begins tomorrow with the US banks. Analysts generally expect corporate performance to emerge as one of the worst in the past three years.
On the FX front, at G10 currencies the pound led with declines after BoE indicated a possible fall in interest rates and the data came out unexpectedly weaker.
Traders expect the deal to be signed on Wednesday and the reporting season begins on Tuesday with banks: JPMorgan, Citigroup, Wells Fargo, Bank of America, Goldman Sachs, Morgan Stanley and BlackRock.
My expectations for the end of the US session are that the indices and stocks will continue to rise in price and hold the day a plus. Before the markets focus on the reports, sentiment will remain largely driven by the imminent Phase I Deal signing in the coming days.
Safe heaven assets are giving way, and I expect them to remain under pressure until the end of the US session, with the yen remaining the leading loser in security assets.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
Trader Martin Nikolov