Ipek Ozkardeskaya
Swissquote Bank Ltd
Friday’s US jobs data brightened up the mood among Federal Reserve (Fed) doves, as both the NFP, unemployment rate and wages pointed at a slowing labour market in April. Stocks and bonds gained, while the US dollar weakened.
This week, the Reserve Bank of Australia (RBA) is expected to sound hawkish, while the Bank of England (BoE) could give a clearer road map regarding its easing plans. The divergence among central banks make the FX markets full of opportunities for investors.
In equities, last week’s dovish Fed pricing and better-than-expected earnings from Apple and Amazon helped the S&P500 eke out a 0.6% gain last week. The index closed last week right on its 50-DMA. Six of the Magnificent 7 stocks reported earnings so far and their results beat lofty market expectations. Beyond the Magnificent 7, 77% of the S&P 500 companies have reported a positive EPS surprise so far, according to FactSet. The blended year-over-year earnings growth rate for the S&P 500 printed a strong 5.0% - versus 3-4% expected by analysts.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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