Spreadex Market Update
US Earnings Season Heats Up As Traders Brace for Tech Giants
EUR was back in focus yesterday with the single currency rallying firmly against a backdrop of hawkish ECB comments and lower US yields. A number of ECB speakers voiced their support for further hikes, citing the need to continue with tightening in a bid to calm surging inflation. On the back of these comments, hawkish expectations for the upcoming May ECB meeting have been resharpened with the likelihood that the bank signals further hikes to come beyond the anticipated minimum .25% hike in May.
Key Factors for Today
- USD weaker as yields slide back
- EUR rallies on hawkish ECB comments
- KO stock jumps on earnings beat before slipping back
- Big US names reporting today
Market Movers
- Bitcoin slides to $27,381
- S&P holding around $4140
- FTSE falls back under £7900
- XAUUSD attempting to get back above $2000
Econ Calendar
- US Consumer Confidence (3pm)
- US New Home Sales (3pm)
- NZD Trade Balance (11.45pm)
Earnings
- Microsoft
- Alphabet
- Visa
Microsoft & Alphabet Reporting Today
\Yesterday was a mostly downbeat day for markets, despite weakness in the Dollar. Equities indices were seen weakening a little as hawkish ECB and Fed expectations weighed on growth prospects. US stocks were the weakest performers yesterday. Today, attention will turn to the latest US data (consumer confidence) amidst an otherwise quiet data schedule. However, the bigger focus will be on the next slew of key US names to report with Microsoft, Alphabet (Google), Visa, Bank of America and others all due to report. Tech and banking sector results in particular will have a big impact on risk sentiment today.
US earnings season saw Coca Cola firmly beating Q1 estimates yesterday. The confectionary giant posted Q1 EPS of $0.68 vs $0.64 expected on revenues of $10.959 billion vs %10.797 billion. This marked the 14th straight quarter of earnings growth for KO stock which recorded a 3% jump in volume and an 11% jump in price. Looking forward, Coca Cola noted that there was a great deal of uncertainty in the outlook and noted too that price hikes would likely be worked back as inflation cooled across the year.
Gold and silver prices have been a little firmer over the last 24 hours amidst the slide in USD. Both metals are still sitting down from recent highs though, for now, the declines look to be corrective, suggesting that further upside is still likely to materialise. The key pivots for both metals are 24.5377 in silver and 1960.91 for gold, back below these levels suggests a broader bearish reversal to come. While above, the outlook remains skewed towards further upside.
In FX, EUR has been the strongest performer over last Asian and early European trading on Tuesday. Hawkish ECB comments are underpinning the currency for now, with further gains expected particularly against AUD and CAD which have emerged as the weakest currencies today. EURCAD was seen breaking out to fresh 2023 highs yesterday on the move above 1.4944 and remains above the level for now while EURAUD has hit fresh 20223 highs today around the 1.6555 mark.
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