Today, all major markets in Asia, Hong Kong, Shanghai, and even Sydney, have surged. The Asian MSCI index has been bouncing off bear territory and this is a positive sign for European investors.
Nasdaq futures are backed by solid stock earnings from Alphabet. Overall, the session yesterday was volatile, major U.S. indexes reversed their earlier gains and ended in negative territory due to the poor US consumer confidence. Tech stocks also showed aggressive profit taking ahead of their earnings. Tesla, Microsoft, eBay and Facebook are expected to announce their earnings today. Another important thing to note today is the fact that oil prices are trending upwards as energy companies have started to report. Yesterday BP reported it’s earnings which had plummeted by two-thirds as demand collapsed and Exxon us expected to announce its earnings today.
For investors, the opportunity may be in companies such as BP and Shell. Even though earnings had plummeted, BP has assured investors yesterday about its dividend commitments.
There are higher chances that Gold may move higher when the Fed will declare its monetary policy decision. We may see the gold price coming out of its consolidation zone.