US banks beat expectations… is this the bottom for banking stocks?
Global stocks rallied as JP Morgan “smashed” expectations…
Citigroup rallied more than 6%....
Dow Jones +187 points… here we go…..
China trade data released yesterday during our session was also much better than expected.
"While JPMorgan had a tough quarter, they still beat estimates. If earnings come in better than expected - with expectations so low - if we have even a decent beat, you may see us break out."
Banks have been heavily shorted over the past several months, however, it appears that a lot of the bad news is largely factored in and we expect some buying momentum to build……..
Today, we have the all important AUS U/E rate and we will be monitoring this number closely….
18,000 jobs are expected for last month with expectations of unemployment at 5.8%....
What's on today?
Prime Minister Malcolm Turnbull arrives in China for his first state visit, amid rising tension at home over China's growing economic influence in the country. He departs on Friday.
Local data: Labour Force for Feb at 11.30am, NZ manufacturing PMI for March
Overseas data: Singapore 1st-Qtr GDP; South Africa mining production (Feb.); Euro-area CPI (March); UK RICS house prices (March); US consumer prices (March), US jobless claims (weekly).
Overseas earnings: BlackRock, Bank of America, Wells Fargo & Co, PNC Financial Services Group, Delta Air Lines, Casino Guichard-Perrachon.
The SPI is up 37 points this morning.
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business.