The us earnings season officially kicked off on April 14, with JPMorgan Chase, Wells Fargo and Johnson & Johnson being the first to report results for the new quarter. Before this, the market sentiment is cautious, spot gold bull outbreak, gold prices broke through 1720, Asian city morning is more than 1723.30 dollars/ounce, the highest since November 2012, it is worth mentioning that the gold price has broken through 1775 dollars, the price gap between futures and spot is still serious. Markets continued to focus on the global outbreak and U.S. financial results during the day. Markets are also likely to be hit today when the IMF releases detailed forecasts for the global economic outlook.
Gold bull big outbreak: break through 1720 pass! Gold broke through 1775…
Recent aggressive monetary and fiscal stimulus in the us, as well as early signs that us coronavirus cases may have peaked, helped stocks rebound from the heavy selling triggered by the pandemic.
The federal reserve on Thursday unveiled a sweeping $2.3 trillion rescue plan to protect the economy from a new pandemic. The crisis has forced 16.8 million americans to claim unemployment benefits since the week ended March 21.
Eu finance ministers also agreed on a 500 billion euro rescue package last Thursday, but left unanswered how to fund the bloc’s recovery from a deep recession.
At present, according to real-time statistics from Johns Hopkins University in the United States, as of 8 o ‘clock Beijing time on April 14, the cumulative number of confirmed cases has exceeded 1.91 million, the number of deaths rose to 119,588, forcing countries to extend the blockade measures, central Banks announced support measures to mitigate financial losses.
It is worth mentioning that the previous data error of Johns Hopkins university in the United States put the number of confirmed patients at more than 2 million globally and more than 680,000 in the United States, which has been corrected to 1.918,800.
Markets remain cautious as U.S. companies prepare to kick off an earnings season that is expected to be bumpy due to an outbreak of novel coronavirus.
As the U.S. corporate earnings season kicks off this week, investors will get a first look at the impact of the novel coronavirus blockade on profits and could provide some clues to the outlook for the rest of the year.
The results will test stocks as they try to bounce back from previous painful declines. The pandemic is expected to lead to a severe economic contraction in 2020, resulting in a sharp drop in corporate profits. The extent of the damage is unclear.
Wall Street is scheduled to kick off the earnings season, with jpmorgan chase and Wells Fargo due to report on Tuesday, and analysts predicting a bleak outlook for the year.
Quincy Krosby, chief market strategist at Prudential Financial, said European and other markets were still closed after Easter Sunday and volume was lower than usual, but investors were “also facing another phase of the market, which is earnings season.”
“We’re going to have a special earnings season,” SEC chairman Jay Clayton said earlier. Mr. Clayton has said the SEC will allow public companies to delay their results and investors should expect delays. Many U.S. companies, including twitter and target, have recently withdrawn guidance due to the uncertainty surrounding the COVID 19 outbreak. So far, at least 84 companies have issued early warnings of negative first-quarter earnings.
Jimmy Conway, head of equity trading strategy for Europe, the Middle East and Africa at CitiGroup global markets, said in a previous interview that the next wave of U.S. earnings could see some pretty scary cash flow Numbers. He believes the stock market will not see a full recovery until it sees an upward revision in earnings expectations.
Chris Harvey, head of equity strategy at Wells Fargo securities, said the worst is over for U.S. stocks and that while the upcoming earnings season will be ugly, stocks won’t be heading back to their previous lows.
Goldman sachs analysts said in a report that they believe defensive sectors such as consumer staples, health care and utilities will be unaffected compared with most cyclical sectors. Goldman sachs analysts expect s&p 500 earnings to fall 15% in the first quarter from a year earlier and 33% in 2020.
Major Wall Street indexes fell Monday as U.S. companies entered earnings season, with earnings expected to be hit by a new outbreak. As a result, gold prices exploded on Monday, with spot gold finally breaking through the 1,700 marks and peaking above $1,720, up more than 1.5 percent to nearly $30 on the day.
Early Tuesday morning in Atlanta, gold climbed on top of the previous day’s huge gains, breaking above $1,723.30 an ounce, its highest level since November 2012.
It is worth noting that the price gap between gold and spot gold is still serious. On Tuesday, Asia city consolidation, gold prices rose above $1,775, the peak hit 1775.90, the day before the peak hit around $1,772.
“The U.S. stock market is in a pretty choppy mode right now, and people who can’t digest it are continuing to buy gold aggressively,” said Phil Streble, chief market strategist at Blue Line Futures in New York. “I still think future inflation is the biggest reason for potential buying.”
Edward Morse, global head of commodities at Citi Research, said his short-term target for gold was $1,725. Morse expects gold to rise to $2,000 between 2020 and 2021.
Emerging markets have been slowing their purchases of gold as their currencies weaken against the dollar, but Morse believes overall investor demand is strong enough to push gold higher.
Don’t forget the IMF’s global economic outlook
For the first time in history, the spring meetings of the IMF and the world bank group in 2020 will be held by teleconference due to a new outbreak.
The meeting is scheduled for April 13, 19 at the solstice, and the IMF will release its detailed global economic outlook on Tuesday. The report will provide forecasts for key member states and the global economy. The IMF is expected to downgrade its outlook for the global economy because of the outbreak.
In a speech prepared for this week’s spring meetings of the IMF and the world bank, IMF managing director Gloria Georgieva said the world economy would suffer its worst recession since the great depression this year and would not see a partial recovery until 2021.
On February 19th the IMF told finance chiefs of the group of 20 leading economies that “global growth appears to be bottoming out”. Three days later, ms Georgieva predicted that the virus might cut the organization’s 3.3 percent global growth forecast for this year by only 0.1 percentage points, although she admitted that a “more frightening scenario” was the understudy.