• US stocks have traded modestly higher over the past week as earnings season has commenced. Earnings results have been mixed so far although large banks have generally fared well with quarterly results broadly ahead of estimates. Market concerns about 2023’s profitability remain an issue however, as companies that lowered earnings guidance (e.g., Goldman Sachs) have seen share prices stumble.
• Economic data in Europe continues to be largely unsettled, as highlighted by persistent inflation in the UK (March year-over-year data was well above forecasts) along with sharply lower consumer sentiment in Germany. Conversely, China had a surprisingly low March inflation reading with GDP advancing well above forecasts.
• On the monetary policy front, expectations appear to be solidifying for another interest rate hike in May. Accordingly, Treasury yields have been climbing and the dollar has continued its recent rise.
• Looking ahead, attention will be focused on new earnings releases, particularly in the technology and communications sectors, as larger firms begin to report their 1st quarter performance.
DISCLAIMER: The information provided in this blog post is for informational purposes only and should not be construed as financial advice. Investment decisions should be based on individual financial goals, risk tolerance, and consultation with a qualified financial professional.