“Record annual profits for JPMorgan haven’t done much to lift the mood, which remains firmly risk-off as the week winds down.”

Earnings season starts with a whimper

“Investors appear to be in a mood to look for negatives in this round of earnings updates, if today’s from JPMorgan are anything to go by. Profits were up, but so were costs, and the bank couldn’t resist the opportunity to opine on what it thinks the Fed will do too, in this case going for a rather extreme ‘six or seven’ rate hikes for the year. In a world of higher rates, investors are going to be more demanding when it comes to company performance, and JPMorgan has felt the brunt of that today, down 5% in afternoon trading.”

Markets finish off the week on the back foot

“The afternoon session saw indices take a swift dive further into the red, but while most markets are still trading lower a small recovery off the lows has been witnessed. Nonetheless the optimistic view has had a hard time prevailing this week, and it looks like investors continue to sell into strengthen, pointing towards a further negative atmosphere as the second half of January gets underway.” 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

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