Caterpillar drives improved global outlook

Strong Caterpillar earnings have helped improve market sentiment, with the 10-year hitting 3%. Meanwhile Bitcoin is back on the cards for traders after recent recovery

• FTSE gains slide, while the US 10-year hits 3%
• Cryptos back in fashion, as Bitcoin breaks towards $10,000
• Caterpillar earnings drive global optimism

FTSE gains have ebbed away towards the end of today’s session, as the pound looks set for its first positive day in a week against the dollar. While European and US stock markets have done little to reflect a particularly bullish market sentiment, recent geopolitical fears appear to have abated, driving the US 10-year bond yield above 3% for the first time since 2014. 

The cryptocurrency sector appears to be back on the front foot this week, with Bitcoin rising sharply to reach the highest level in over a month against the dollar. A wide-ranging resurgence in altcoins has helped provide a significantly more optimistic picture of a sector which has been under pressure for most of 2018. With the US federal tax declaration date passing a week ago, the resurgence in market buyers has helped drive sharp gains across the board, with Bitcoin (+16%), Ripple (+88%), Bitcoin cash (+93%), Ethereum (+34%), and Stellar Lumens (+34%) all gaining significantly against the dollar over the past week. 

Caterpillar has helped boost the global economic picture today, as the US heavy machinery producer blasted past Q1 market expectations to rise to the top of the Dow leader board. With Caterpillar typically seen as a bellwether for worldwide economic development, there is no surprise that today’s figures has provided a welcome boost to market sentiment. Outperformance across Q1 earnings and revenue, coupled with a significant improvement to the 2018 profit guidance goes a long way to driving optimism for a firm that stands to gain from any infrastructure project Donald Trump chooses to impose.