(Bloomberg) – Global stocks rose Tuesday before one of the most uncertain profit seasons on record as the coronavirus pandemic shakes the global economy. The dollar fell.
Stocks climbed across Asia with references to South Korea and Japan. Futures contracts in the United States rose after the S&P 500 index fell overnight. Data showing that Chinese yuan exports fell less than expected helped to stimulate sentiment, as did previous figures showing a further decline in the rate of new infections in many countries. Treasury bill yields have fluctuated, while the Australian dollar has strengthened in the risk tone.
As the profit season kicks off this week, traders are concerned about how severe the blow to global profits could be as the coronavirus pandemic disrupts the global economy. With the epidemic wreaking havoc around the world, investors have been lost in the fog over corporate profits.
Meanwhile, countries around the world have weighed in on when it would be safe to loosen the restrictions, as areas from New York to Spain have shown lower rates of infections.
“Businesses, analysts, traders, investors and strategists to some extent” soar into the profit season without instruments, “wrote John Stoltzfus, chief investment strategist at Oppenheimer & Co., at clients. “The unprecedented nature of economic closure, social distancing and government-mandated housing provides an overhang of uncertainty.”
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Elsewhere, oil prices rose in Asia, capitalizing on the commitment of larger producers to cut production, although doubts remain as to whether the cuts will be enough to offset the destruction of demand caused by Covid-19 . Gold fluctuated.
Focus this week:
US banks and finance companies begin reporting first quarter results, led by JPMorgan, Citigroup, Bank of America, BlackRock, Goldman Sachs and Wells Fargo. Bank Indonesia decision rate and briefing TuesdaySouth Korea holds legislative elections and Bank of Canada has a rate decision Also on Wednesday, retail sales in the United States are about to drop in March for the greatest number ever seen China publishes GDP, industrial production and retail sales and figures on Friday unemployment
These are the main movements on the markets:
S&P 500 futures rose 1.3% at 12:20 p.m. in Tokyo. The S&P 500 fell 1% on Monday. Japan’s Topix index increased by 1%. The Kospi index for Korea rose 1.6%. The S & P / ASX 200 in Australia was up 0.7%. The Shanghai composite index was up 0.7%. The Hang Seng index was up 0.6%.
The Bloomberg Dollar Spot Index fell 0.2% .The euro rose 0.3% to $ 1.0947. The Japanese yen rose 0.1% to 107.66 per dollar.
The yield on 10-year Treasury bills varied little at 0.77%.
West Texas Intermediate crude rose 0.8% to $ 22.60 a barrel, while gold rose 0.3% to $ 1,721 an ounce.
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