News and Analytical survey

At this time last year S&P500 has lost 7% YTD, sliding down by almost 1% a day.

On January 20 Donald Trump will officially become the president of the United States and it is quite an event anticipated by the market, as his level of activity in new role is expected to be very high. Also new earnings season kicks off, which will be one of the main growth drivers for the equity market.

450 out of the 500 largest US companies have already submitted their reports for the Q1. They exceeded expectations in general, but investors are looking for stronger results in the next quarters. The consensus forecast of analysts confirms that these expectations are justified.

Headline news:
• Earnings season has almost finished exceeding expectations. (04/22 – 05/11/2016)
• The Fed has kept rates at the same level. (27/04/2016)
• The US macro data is mixed. (04/22 – 06/05/2016)
• China imports and exports has decreased. (08/05/2016)

Banks in the US reported better than expected, in China the positive macroeconomic data released, investors are not worried about the oil, and the Fed is set to gradual rates increase as a prerequisite to continue approach to historic highs.

Headline news:
• Yellen, Bernanke, Greenspan and Volcker reassured investors. (April 7, 2016)
• In China exports, industrial production and retail sales rising. (April 13 and 15, 2016)
• There is no agreement on the oil production freezing, but it does not scare investors. (April 17, 2016)
• The largest banks in the US reported better than expected. (April 13-15, 2016)

Earnings season kicks off April 11, and facing the US dollar depreciation, we consider that the S&P 500 companies will be able to provide the updated, stronger views for revenue and profits for FY2016.

Headline news:
• Yellen wants no hurry to raise interest rate. (29.03.2016)
• S&P lowers outlook on China's credit rating. (31.03.2016)
• Factory Orders in Germany stages surprise fall. (05.04.2016)
• Exporting countries are ready to cut production despite Iran. (06.04.2016)

Fed's last meeting convinced investors that the regulator will not rush to increase interest rates, so a slowdown, which would threaten the economy with recession, is not observed either. The US market is growing through the sixth
consecutive week.

Headline news:
• ECB has expanded money supply. (March 10, 2016)
• The Fed has left rates unchanged. (March 16, 2016)
• OPEC members will discuss oil proration on April 17. (March 16, 2016)
• Economic activity in the Eurozone is growing. (March 23, 2016)

Leave a request

and our specialist will contact you as soon as possible