Strong corporate earnings improve sentiment

Monday, April 20, 2015

Strong corporate earnings results increased risk appetite and improved market sentiment in the first trading session of the week. European equity markets rebounded and posted renewed gains today with the CAC, DAX and London equity benchmark indices gaining between 0.55% and 1.55%. In the US, the Dow Jones index recovered and surged over 200 points (+1.3%) above 18,000. S&P 500 and NASDAQ indices have gained over 0.9% at the time of writing.

Dow Jones index surges over 250 points

INDU Index (Dow Jones Industrial 2015-04-20 15-59-28

Morgan Stanley reported strong earnings results which beat analysts’ expectations. The bank announced the highest adjusted revenue in more than 5 years due to increases in equity trading and brokerage revenue. The optimistic results spread a bullish tone across the global equity markets, showing a strong rally in banking stocks. In London, the HSBC, Standard Chartered and Barclays climbed higher between 0.6% and 2%.

Crude oil prices started the week in positive territory with WTI front month futures gaining towards $57 per barrel and Brent front month futures rising towards $65 per barrel. Royal Dutch Shell gained 1.25%, while BP and BG Group rose 0.6% and 0.25%, respectively. On the other hand, Petrofac remained under pressure and plunged over 10% after reporting that it will have to recognise a further $195 mln loss regarding with its Laggan-Tomore gas plant project in Shetland in 2015.

WTI front month futures

CLK5 Comdty (WTI CRUDE FUTURE  M 2015-04-20 16-01-11

In the meantime, uncertainty regarding the Greek debt issues continues to dominate the markets, adding pressure to the euro which slid lower towards 1.07 against the US dollar. 

Topics: Equities, Europe, Crude oil, WTI, EUR, UK, US
More from: Myrto Sokou