Green Light For Australian Banks, EU At Nine(9) Week High, Earnings Still In Focus

Early morning earnings reports include several S&P 500 names and the results are mixed.
Thomas Hughes
Trader screens

Bank Of Australia Holds Rates Steady

The Australian banking sector got a boost from two key events on Wednesday. The Reserve Bank of Australia made headlines when it decided to hold rates unchanged. The bank is keeping its overnight cash rate at 1.5% and says the outlook for growth is “reasonable”. RBA Governor Phillip Lowe says downside risks have increased but Australia should grow at 3% this year and a little slower next.

In other news, the Royal Commission investigating misconduct within Australia’s banking sector says the nations largest banks don’t need to be broken up. The commission did recommend several dozen legal actions against various institutions, executives, and employees so the news wasn’t good for everybody. Regardless, the top banks rose 4% to 8% across the board. The ASX closed up nearly 2.0%.

In Japan, equities were mostly lower on weak volume and anticipated for earnings due out in the US session. Chinese and Korean markets remain closed for the Lunar New Year Holiday. China’s markets will remain closed all week, Korea will reopen on Thursday.

European Markets Move Up To Set Nine Week Highs

In Europe, the major indices were all higher on earnings optimism. The CAC, DAX, and FTSE 100 were all up 1% to 1.5% at midday and edging higher. The FTSE 100 led the charged despite lingering concern over the Brexit, with all markets led by energy.

Results from BP were much better than expected, in line with results from other top integrated oil companies, and helped lift the entire energy complex 1.5%. Shares of BP were up 5% on a 65% increase in YOY profits. Shares of jewelry maker Pandora were among today’s top performers. The company’s shares surged more than 14% after its earnings came in above consensus.

Earnings In Focus, State Of The Union May Cause Volatility

US indices were moving higher in the early pre-opening futures action. The trade was driven by earnings and lack of bad news, a combination that may allow stocks to move higher this week. The industrials were leading with an advance near 0.40% but its lead was not large. The broad market S&P 500 and tech-heavy NASDAQ Composite were both up near 0.20%.

Early morning earnings reports include several S&P 500 names and the results are mixed. Viacom beat EPS but missed on revenue, Estee Lauder beat on the top and bottom lines, Pitney Bowes met EPS estimates but beat on the top line, and Archer Daniels missed on both the top and bottom lines.

The market will be looking toward some key earnings reports after the close as well. These reports include Chubb, Disney, and Electronic Arts but their impact may be overshadowed by the State of the Union Address. President Trump is expected to speak on many topics including trade, border security, and the government shutdown. There is a lot of risk in his remarks about the US, he is well known to speak off the cuff, so traders may be cautious going into the close of today’s session.

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

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
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.
RISK DISCLAIMER
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.
FOLLOW US