If you have been away for two weeks and had a news embargo and a Blue Sky ‘blackout’, then you can be forgiven for wondering what all the fuss is about when catching up on what’s been going on. After all, we have just experienced the longest winning streak for equities so far this year. A series of data points consistent with a soft landing in the US, helped the panic of two weeks ago fade into the background.
On this week’s agenda:
- US earnings season has been very resilient
- Can the rally continue?
- The dollar hits year lows and gold shines
- Natural bedfellows?
- UK business activity grows more than expected
US earnings season has been very resilient
Whilst the direction of inflation and interest rates are very important, fundamentally, stock markets are focused on corporate profitability.
Legal and General Investment Management (LGIM) state that amid the recent noise, it’s useful to step back and recognise that the fundamental earnings picture has remained very resilient. With 90% of the earnings season now complete in the US, we can start to draw some firm conclusions.
Continues…
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