From Anshuman Daga Europe and an outlook on the day ahead in global markets
After a strong start to the year, stocks are finally catching a breather, fueled by hopes that the outlook for the world economy is not as bad as expected a few months ago.
Asian shares were steady near seven-month highs after a mixed session on Wall Street on Wednesday.
On the corporate front, Barclays ( BARC.L ) CEO CS Venkatakrishnan has appointed former Credit Suisse ( CSGN.S ) dealmaker Cathal Deasy as co-head of investment banking in a bid to grow and succeed the business.
Revenue at Europe’s biggest companies is expected to grow just 0.9% in the fourth quarter, according to data from Refinitiv I/B/E/S on Tuesday.
Pan-Europe The forecast, which tracks companies listed on the benchmark STOXX 600 (.STOXX) index, is down from last week, when analysts had expected revenue growth of 4%.
Analysts cut earnings forecasts
Investment strategists at Standard Chartered say it’s time to taper off the rally in European shares and the euro since September’s lows.
They say the unusually warm winter has allayed fears of widespread energy shortages and rationing in Europe. The reopening of China’s economy has been another tailwind for European exporters’ prospects.
But they pointed to many headwinds for European stocks, including extended technical tools and increasingly tight central bank policy.
Meanwhile, Microsoft (MSFT.O) USAkicked off its tech season with a sober outlook, predicting third-quarter revenue in its cloud business to come in shy of market forecasts.
A 2% rise in last-quarter revenue, the slowest growth in more than five years, Apple (AAPL.O) and Googleof parent Alphabet (GOOGL.O) on earnings next week report pointed to more difficult times for technology companies as it will give.
Key developments that could affect the markets on Wednesday:
European results: Christian Dior
USA results: IBM, AT&T, Boeing, Whirlpool
Reporting by Anshuman Daga; Edited by Christopher Cushing
Our standards: Thomson Reuters Trust Principles.
Source – reuters