Futures Rise On Hope, Brexit Drama Intensifies Again, China GDP Outlook Downgraded By IMF

Markets rise on lingering hope for trade and Brexit deals, but don’t bet on a major rally without earnings to support it.
Thomas Hughes

The U.S. Market Is Up, Earnings Are In Focus

The U.S. futures are indicated higher on Monday morning as traders turn their attention to earnings. The 3Q earnings season got off to a decent start last week with 80% of those reporting beating their EPS consensus estimate. The problem is that most companies beat their estimates by a much smaller margin than in the past even as revenues rise. This week the market is looking for reports from over 100 S&P 500 companies and a handful of Dow components. The NASDAQ Composite is in the lead with a gain of 0.40% while the S&P 500 is up 0.30% and the Dow 0.20%.

In earnings news, shares of Lennox are moving lower in early pre-market action after the company lowered its full-year guidance. Shares of Haliburton are flat after the company reported revenue and EPS missed consensus. Across the pond, shares of software giant SAP are up sharply after it reported better than expected revenue. Later this week traders will be looking for reports from McDonald’s, United Technologies, Harley Davidson, AT&T, and Ford.

EU Markets Rise As Brexit Uncertainty Resurfaces

The EU markets are broadly higher in early Monday trading even as Brexit uncertainty intensifies. A newly-negotiated deal with the EU has been put on hold by Parliament. Parliament voted to force PM Boris Johnson to request another extension despite his pledge to never do said action. Johnson is expected to push for a second vote early this week. The EU is expected to respond to the extension request as early as today. The DAX is in the lead at midday with a gain of 0.90% while the FTSE and CAC are trailing with advances closer to 0.25%.

In stock news, shares of Germany’s Wirecard are up more than 8.0%. The company says it will begin an independent 3rd party audit of its financial practices following a report in the Financial Times. The FT alleged WireCard is engaging in fraudulent activities. Shares of Tomra Systems are also up 8%, it reported strong 3rd quarter results.

Asia Flat, Mixed In Monday Trading

Asian markets are flat and mixed at the end of the Monday session. Trading was supported by increasing hope a trade deal is at hand although there is still no indication of when it will emerge. On Friday, Chinese Vice Premier Liu He revealed the two sides had made substantial progress and would continue to work together to solve differences. In other news, the IMF downgraded China’s GDP outlook saying activity could fall below 6.0% growth in 2020. The Nikkei led in Monday action with a gain of 0.25% while most others closed within 0.05% of flat.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.