{"id":140255,"date":"2019-01-17T08:45:21","date_gmt":"2019-01-17T13:45:21","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=140255"},"modified":"2019-01-17T08:38:58","modified_gmt":"2019-01-17T13:38:58","slug":"u-s-earnings-mays-survival-chinas-stimulus-extends-bullish-correction","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/01\/u-s-earnings-mays-survival-chinas-stimulus-extends-bullish-correction\/","title":{"rendered":"U.S. Earnings, May\u2019s survival & China\u2019s stimulus extends bullish correction"},"content":{"rendered":"
January 17, 2019<\/div>
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Article by ForexTime<\/a><\/strong><\/p>\n

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A solid kick off for the U.S. earnings season, Theresa May surviving a vote of no-confidence, China\u2019s central bank pumping record liquidity, and policymaker assurances to take the right actions were all key factors in supporting risk in financial markets and keeping equity bulls in charge.<\/p>\n

Upbeat U.S. bank earnings boosted investors\u2019 confidence this week. Goldman Sachs was up 9.5% on Wednesday after beating estimates by a wide margin on both top line and bottom line. Yesterday\u2019s surge in its stock was the best reaction to earnings results in a decade. Bank of America also crushed expectations and ended the day 7.2% higher. The numbers released so far from U.S. banks managed to ease some concerns on the economy. However, confirmation is still needed from other sectors – mainly the cyclical ones – to provide better guidance on how consumers are behaving, which is critical to future earnings.<\/p>\n

Prime Minister Theresa May\u2019s government survived a no-confidence vote yesterday, just one day after her humiliating Brexit defeat. This result seemed to have been properly priced into the Pound given the slight reaction to the news. A snap general election appears to be out of the equation now, but there is still a high probability of a second referendum taking place. Although a soft Brexit remains to be the most likely scenario, it\u2019s a tough call to make. Expect an extension of Article 50 to provide a further boost to the Pound, but if May starts to open up to the idea of a second referendum, Sterling may easily jump above 1.30.<\/p>\n

Additional stimulus from China also managed to boost sentiment. After cutting taxes in response to disappointing industrial production figures and falling exports, monetary authorities injected a record $84 billion into the country’s banking system. Such actions indicate that China will continue to use all available tools to reduce the impact from ongoing trade tensions with the U.S. However, this will only have a short-term impact on markets and only some sort of agreement with the U.S. to end the current trade tensions will provide a sustainable positive influence.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Disclaimer: <\/strong>The content in this article comprises personal opinions and should not be construed as containing personal and\/or other investment advice and\/or an offer of and\/or solicitation for any transactions in financial instruments and\/or a guarantee and\/or prediction of future performance. ForexTime (FXTM), its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness, of any information or data made available and assume no liability as to any loss arising from any investment based on the same.<\/em><\/p>\n<\/div>\n

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\"Forex-Time-Logo\"Article by ForexTime<\/a><\/span><\/strong><\/p>\n

ForexTime Ltd (FXTM)<\/strong> is an award winning international online forex broker regulated by CySEC 185\/12 www.forextime.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Article by ForexTime A solid kick off for the U.S. earnings season, Theresa May surviving a vote of no-confidence, China\u2019s central bank pumping record liquidity, and policymaker assurances to take the right actions were all key factors in supporting risk in financial markets and keeping equity bulls in charge. Upbeat U.S. bank earnings boosted investors\u2019 […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-140255","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140255","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=140255"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140255\/revisions"}],"predecessor-version":[{"id":140266,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/140255\/revisions\/140266"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=140255"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=140255"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=140255"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}