“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.”
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