Europe opens slightly down as US earnings season begins (banks)
After a slight decline yesterday (e.g. DAX -0.2%), futures in Europe indicate another slight opening loss of around -0.4%. However, stocks have performed well in the weekly context, with indexes gaining over +1%. Therefore, today’s closing will be closely watched to see how technical indicators on weekly charts perform. This will determine if recent stabilization can be seen as a promising element for the coming weeks.
In the US, stocks struggled on Thursday as inflation for the past month (3.7%) indicated that further decline may not be straightforward. Nervousness was also triggered by a subsequent weaker auction of US bonds, causing yields to rise again (to 4.66%). The SP500 index eventually weakened by -0.6%, while overseas futures are currently adding +0.1%. Asia was weaker overnight, with weak data from China (CPI, PPI) affecting sentiment. China is even considering the formation of a state stabilization fund for stocks. Hong Kong stocks suffered the most, declining by -2.4%.
In Europe today, industrial production data will be monitored. Subsequently, the US earnings season will begin, with giants JPM, C, and WFC releasing their results. In Prague, Erste Bank slightly declined yesterday (-0.5%), and its movement in line with sector sentiment can be expected in the afternoon. KB Bank received a confirmed rating from Fitch. KB Bank’s shares returned above 670 CZK (+0.3%). ČEZ, a highly watched stock, strengthened to 990 CZK (+0.8%) and is now above the technical 200-day moving average (985 CZK).
Pavel Hadroušek, broker at Fio Banka, a.s.
What impact did the weaker auction of US bonds and disappointing data from China have on global markets, and how are overseas futures currently indicating
Europe set to open slightly lower as US earnings season begins (banks)
After a minor decline yesterday, European futures are pointing to another small opening loss today. However, despite this, markets have performed well over the week, with indexes gaining over 1%. Today’s closing will be closely monitored to see how technical indicators on weekly charts perform, which will provide insight into whether the recent stabilization can be seen as a positive sign for the coming weeks.
In the US, stocks struggled on Thursday as inflation for the past month indicated that further decline may not be straightforward. Concerns were also raised by a weaker auction of US bonds, causing yields to rise again. The S&P 500 index weakened, but overseas futures are currently showing a slight increase. Asian markets were weaker overnight, impacted by disappointing data from China, with Hong Kong stocks suffering the most.
In Europe today, attention will focus on industrial production data. Following this, the US earnings season will begin, with JPM, C, and WFC releasing their results. The movement of Erste Bank in Prague is expected to align with sector sentiment in the afternoon after a slight decline yesterday, while KB Bank received a confirmed rating from Fitch. KB Bank’s shares have returned to a positive trend, and ČEZ has strengthened above its technical 200-day moving average.
Pavel Hadroušek, broker at Fio Banka, a.s., comments on the market developments and keeps investors engaged with his insightful analysis.
I’m interested to see how the European market has been faring amidst the ongoing challenges.
I’m also curious to know how the US banks have been performing in this uncertain economic climate.