The U.S. Market Is Up In Early Trading
The U.S. equity market is indicated to open higher in early Wednesday trading. The rebound is led by the NASDAQ Composite which is looking at a 0.70% gain at the open. The S&P 500 and Dow Jones Industrial Average are trailing with gains near 0.35%. The move is driven by relief China is preparing efforts to contain the deadly new virus that has emerged. Traders should be cautioned, we may not have heard the last of this outbreak, there is still risk to the market.
In stock news, the earnings season is well underway with roughly 10% of the S&P 500 reporting. So far, 75% of those who have reported have beaten the consensus estimate. IBM tops today’s news after it beat on the top and bottom lines. Growth was driven by the addition of Redhat and is expected to continue this year. The tech-leader upped its guidance on the strength and saw shares rise 4.0%. Netflix also reported since yesterday’s close. The leader in digital streaming grew revenue more than expected, posted better than expected international subscriber growth, and saw its shares rise 2.0%.
European Markets Are Mixed, Traders Are Wary Of China’s New Virus
The European markets are mixed at midday. Traders in the region are wary of China’s new virus and the impact it may have on global economic activity. The DAX is leading advancing markets with a gain of 0.12% while the FTSE 100 trails with a loss of -0.30%. The CAC is splitting the difference hovering near the break-even level.
The Davos conference is still underway. Today’s news includes remarks from President Donald Trump concerning EU trade relations. He said, following a meeting the EU president, the EU has no choice but to agree to a new trade deal. If not, the U.S. will raise tariffs on European autos and other items.
In stock news, shares of financial services stocks are up nearly 1.0% while banks are down -0.30%. Autos are also moving lower, down about -0.30%, on the Trump comments. Berkely Group is among today’s hottest issues, up 5% after it announced an increase of shareholder returns over the next few years. Italian banks were hardest hit, down more than -3.0%, after the resignation of a key member of the government.
Asia Markets Rebound, Hong Kong Leads
Asian markets rebound in Wednesday’s session after falling hard the day before. The Hong Kong Hang Seng is in the lead with a gain of 1.27% while others in the region posted smaller advances. The Korean Kospi gained 1.23% after the Bank of Korea revealed 4th quarter GDP grew faster than expected and set a three-year highs. The Shanghai Composite posted the smallest advance, only 0.28%.
This article was originally posted on FX Empire
More From FXEMPIRE:
- Crude Oil Price Forecast – Crude Oil Markets Break Down
- USD/JPY Fundamental Daily Forecast – Light Short-Covering as Safe-Haven Demand Eases
- AUD/USD Price Forecast – Australian Dollar Rebounds
- Natural Gas Price Forecast – Natural Gas Markets Gap Higher
- Silver Price Forecast – Silver Markets Choppy On Wednesday
- Gold Price Forecast – Gold Markets Continue To Grind