Dow Jones Falls, SGD Gained on MAS Policy, Hang Seng Eyes Xi’s Speech
Oct 14, 2020 (MENAFN via COMTEX) —
(MENAFN – DailyFX) DOW JONES, HANG SENG, STRAITS TIMES INDEX OUTLOOK:
Dow Jones erased gains despite a slew of upbeat corporate earnings from big banks Singapore’s advanced Q3 GDP contracted 7% YoY, monetary policy to remain unchanged Hong Kong stock exchange resumes trading on Wednesday. Xi Jinping to give a key speech. Advertisement Dow Jones Index Outlook:
The Dow Jones Industrial Average (DJIA) came off from a six-week high as profit taking activities kicked in and corporate America unfolded their third quarter earnings results. Not surprisingly, six out of seven S & P 500 constituent companies, which released their profits on Tuesday, smashed analysts’ expectations (table below). This may set an upbeat tone for the earnings season.
JPMorgan and Citigroup delivered 29.4% and 52.5% positive surprises respectively in terms of their earnings per share (EPS), thanks to lower loan-loss provisions. Larger banks may outperform the smaller peers with contributions from investment banking, trading and asset management businesses amid improving market conditions. Apple’s share price plunged 2.7% after the release of new iPhones, souring risk appetite. Bank of America, Goldman Sachs, Wells Fargo will reveal their earnings Wednesday.
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S & P 500 Earnings – October 13th 2020
Asia-Pacific markets opened in mixed sentiment on Wednesday, with mainland Chinese, Hong Kong and Malaysian stocks likely to lead gains. Japanese and Australian equities opened lower.
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Technically, the Dow Jones index has come off its six-week high of 28,950, entering into a technical correction. Given strong upward