Global Shares Advance as Strong Earnings Boost Market Sentiment

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Principal Points:

• Stocks on Wall Street surge after Bank of America and Morgan Stanley post rise in profits
• European markets rally on earnings optimism, hopes for a sustained economic recovery

What’s Moving in the Markets?

Stocks globally pushed mostly higher on Friday amid renewed optimism the economic rebound would continue. The upbeat market mood today comes a day after both US and European equities surged on strong earnings reports.

As the financial reporting season is gaining traction, traders and investors have shifted their risk appetite and increased their exposure. In more detail, stocks on Wall Street advanced broadly on Thursday and futures remain in the green today.

During regular trading yesterday, the S&P500 soared to its best day since May as the index added 1.7%. The tech-focused Nasdaq Composite also delivered the same gain. Meanwhile, the Dow Jones Industrial Average climbed 1.5% or more than 500 points.

In Europe today, stocks opened fairly muted and slightly to the upside. Investors in the old continent aim to build on yesterday’s gains, which were widely a result of the earnings season. On Thursday, the pan-continental Stoxx 600 closed the day higher by 1.2%. In addition, all major European benchmarks finished in positive territory.

What’s the Big Picture for Traders?

The earnings season in the US and Europe is now the main theme across the broader financial markets. In this regard, third-quarter results from major corporations are poised to affect the performance of stocks. Yesterday, Wall Street mainstays defined the trading session.

Investment banks, including Bank of America, Citigroup, and Morgan Stanley, reported better-than-expected quarterly figures. The slew of positive reports significantly improved the market outlook as many more are yet to deliver their financial figures.

Bourses across Europe are also expecting the upcoming earnings reports to be positive. Overall, optimism around third-quarter reporting has seen previously struggling stocks return back to strong upside momentum.

Bitcoin Hits $60,000, Hovers Just 8% Away from Record

The price of bitcoin, in the meantime, keeps moving higher. Moreover, it has gained nearly 40% since the start of October. This morning, the orange token briefly traded at $60,000 for the first time since April 18. It’s worth noting that bitcoin’s price now hovers just about 8% below its record set on April 14.

The latest of a flurry of positive developments to power the crypto market is rumors around a US Bitcoin ETF. In other words, an exchange-traded fund that would allow trading bitcoin futures. If approved by the SEC, Bloomberg reported earlier today, a Bitcoin ETF would be first to start trading in the US.

To put this into perspective, the first Bitcoin ETF application was filed by the Winklevoss twins in 2013. On that note, crypto backers are eager to find out as soon as next week what the US regulator will decide.

Economic Data Coming Up Today (EST times)

Market participants today will be watching the latest retail sales report from the US. The economic data, scheduled for 8:30 am, is likely to increase the volatility in the forex market, as well as the prices of gold and silver.

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