Earnings have once again been better than expected this
season. We expect the earnings surprise to be mostly priced in
now, hence macro will become more important again, starting with
US GDP today.
What's going on?
Earnings have once again been better than expected this earnings season. We
expect the earnings surprise to be mostly priced in now. Hence macro will become
more important again, starting with US GDP today. We have plenty of data today,
but GDP is the main event. We expect a solid growth of 2.6% driven by consumer
spending, which we also expect will increase 2.6%.
QE2 looks more and more likely. Not only are the US economic data not too
comforting at the moment, but Regional Fed President Bullard is now openly
calling on the Fed to purchase treasuries if (we say when) the economy slows.
Japan’s unemployment rate rose to 5.3% in June, industrial production fell 1.5%
MoM, while CPI was unchanged at -0.7% YoY.
ANALÜÜTIKA
