Trading on Asian stock markets is on a positive trend, after trading closed on Wall Street yesterday with price increases. The Nikkei index in Tokyo leads with an increase of about 1.6%. In trading in Wall Street indices, stability is evident. The yield on 10-year US bonds stands at 0.55%.
The continued rate of spread of the corona virus will likely continue to be the main factor guiding investor sentiment today and in the days to come. A further slowdown in the rate of virus spread in the United States will contribute to positive sentiment in the markets. Unemployment benefit claims released Thursday in the U.S., along with the monthly employment report released Friday, will also help investors understand what the recovery outlook is for the U.S. economy.
As mentioned, the US stock markets closed higher yesterday when the Nasdaq index climbed to an all-time high. The positive sentiment in the opening of August in the American market came against the background of the recovery in industrial production activity in the US – which has risen to the highest level in a year and a half, along with optimism about finding the vaccine in Corona. No significant macro data will be published in the world today. .
In commodity trading, gold today rose slightly to about $ 1,991 an ounce (December contract), while Brent crude traded down 0.7 percent to $ 43.82 a barrel.
The reporting season is in full swing, and Deutsche Bank economists note in their weekly review that “we are already more than halfway through the reporting season in the United States and Europe when 63% of companies in the S&P 500 index and 62% of companies in the European STOXX 600 index published their reports for the second quarter. 85% of the companies that have reported so far in the S&P 500 have reported a higher profit than analysts’ expectations, the highest expected rate ever and higher than the average for the last 5 years which stands at 72%.
“All five major technology companies that make up about one-fifth of the S&P 500 beat forecasts. Similarly, the rate of companies beating forecasts from the STOXX 600 is 63%. Perhaps the reason companies beat forecasts so high is simply that in an environment with such economic uncertainty “It is very difficult to predict the companies’ performance. However, the results may beat the forecasts, but the decline in profits compared to last year is still very sharp,” say Deutsche Bank.