US corporate outperformance helps drive global market sentiment

Joshua Mahony MSTA Scope Markets

Strong data from Netflix and Goldman Sachs is helping push a global resurgence in sentiment, although Goldman is the latest US bank to see its shares fall despite strong earnings.

US corporates boost market sentiment
Evraz leads FTSE 100 as fears of Russian retaliation subside
Goldman Sachs earnings beat fails to drive shares higher

US corporate earnings outperformance is helping drive gains in stock markets across the board this afternoon. A bullish set of figures from Netflix have helped drive the tech sector higher, amid hopes that we are set to leave the Facebook privacy fears crisis behind. Today has provided a refreshing sense of optimism around global markets, with UK stocks reflecting this via a shift back into the recently unloved Russian-focused steel producer Evraz. Despite warnings of a potential Kremlin-driven cyberattack, the initial signs are that the weekend military strikes in Syria will draw a line under recent tensions, allowing markets to shift their focus onto earnings season.

Goldman Sachs is the latest of the US banks to see its share price fall despite strong earnings. We have seen Goldman’s shares tumble over 1% despite it beating market expectations for earnings per share, profit, and revenue. JP Morgan and Citigroup experiencing a similar fate last week. This is an indication that much of the positive impact from the recent economic boom, rising interest rates, and corporate tax cuts has already been baked into bank share prices. Morgan Stanley is due to report tomorrow, and it comes as no surprise that we are seeing its shares drift lower as the session progresses.

Author

Joshua Mahony MSTA

Scope Markets

Joshua Mahony is Chief Markets Analyst at Scope Markets. Joshua has a particular focus on macro-economics and technical analysis, built up over his 11 years of experience as a market analyst across three brokers.

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