BUSINESS Stock markets climb on bright US earnings

BUSINESS

Stock markets climb on bright US earnings

AFP

22:05, October 18, 2022

Major global equities rose Tuesday, with sentiment soothed after Britain shredded its controversial budget and following a series of upbeat US earnings.

On Wall Street, the Dow Jones jumped two percent at the open after a day of strong trading in Asia and Europe, as several big banks updated with healthy data.

Goldman Sachs reported lower profits in its results Tuesday -- but the firm still topped analyst expectations on strong trading revenues.

It follows positive earnings news from the Bank of America on Monday, days after JPMorgan Chase and others also logged solid numbers.

"Better-than-expected US earnings reports sparked a rally on Wall Street with positive momentum reverberating across European equities," Interactive Investor analyst Victoria Scholar told AFP.

"Risk appetite is picking up after a volatile week for markets, as corporate results look to be the main driver of price action today."

Later on Tuesday, investors will also digest results from Johnson & Johnson, Lockheed Martin and Netflix.

Analysts remain hopeful that an upbeat third-quarter results season could give a shot in the arm to markets which have been slammed this year on fears over inflation and Federal Reserve interest rate hikes.

But Craig Erlam, senior market analyst at OANDA, warned the upbeat investor sentiment might not last, saying there was a "strong feeling of a bear market rally about trading over the course of the last week."

"From the post-US-inflation rebound to what has now been a strong start to the week -- in part driven by the UK's decision to no longer shoot itself in the foot -- nothing about this screams sustainable."

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