Last week, the big US banks JPMorgan Chase, Wells Fargo and Citigroup announced solid earnings, generating positive expectations in the market.
This monday 17 of July, the financial markets New York opened higher. The main index, the Dow Jones Industrialsregisters a rise of 0.6% to 34,560.37 points, while the selective index S&P 500 shows a modest increase in 0.2%reaching the 4,513.60 points.
On the other hand, the technological index nasdaqwhere the main companies in the sector are listed, registers a solid increase 0.5%standing at 14,182.14.
Last week, the big American banks JPMorgan Chase, Wells Fargo and Citigroup announced solid earnings, generating positive expectations in the market. In the coming days, the results of other important financial entities such as Morgan Stanley and Bank of America, as well as prominent companies are expected. such as Goldman Sachs, Netflix, Tesla, IBM, United Airlines, Johnson & Johnson, and American Airlines.
However, analysts forecast that this season’s business results will be less favorable compared to previous years. According to FactSet, a decrease of more than 7% in the profits of S&P 500 in relation to the previous year.
Regarding the sectors, the highest gains were observed in the field of technology and non-essential goodswith increases of 0.55% and 0.4% respectively. On the other hand, the public services and real estate sectors experienced the greatest losses, with decreases of 1.06% and 0.69% respectively.
Markets: Chinese disappointment
After a week of historic gains in the stock market, investors were met with a completely different reality on Mondaywhen data revealed that China’s growth in the second quarter fell short of estimates.
The narrative that Chinese buyers, whowho were recovering from the COVID-19 lockdowns, could boost the global economy, despite rising interest rates in the United States and Europe, it seems increasingly increasingly shaky as economic reports continue to signal a slowdown in momentum.
China’s growth weakness has been brewing in the background for months. It is evident that the growth has failed to keep up with expectationssaid Pooja Kumra, a senior European rates strategist at Toronto Dominion Bank.
European stocks are especially vulnerable due to their heavy reliance from the Chinese import market. Companies linked to energy and raw materials together represent approximately 12% of the Stoxx Europe 600 indexwhile consumer discretionary industries account for 11%.
Source: Ambito
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