The stock market has risen as a result of positive US earnings.
Global stock markets gained on Thursday, supported by a strong start to the US earnings season, as more big-name companies reported results and investors pushed their worries about rising prices to the side.
Oil prices rose near multi-year highs as the International Energy Agency raised global demand predictions, citing natural gas and coal constraints as reasons for the shift to crude.
As investors absorbed earnings results from major US banks, Wall Street opened higher, while stock indexes in London, Paris, and Frankfurt also rose in midday trading.
“These results could set the tone for what to expect in the next weeks of earnings season, as growing costs and market volatility scared investors,” said XTB analyst Walid Koudmani.
Morgan Stanley surpassed forecasts with record sales, while Bank of America and Citigroup saw earnings rise as they clawed back provisions made at the outbreak’s inception.
On Wednesday, JP Morgan Chase’s third-quarter profits surpassed expectations, kicking off a generally upbeat start to the US earnings season.
Despite warnings about the impact of rising fuel prices, Delta Air Lines had a healthy third quarter.
Markets.com analyst Neil Wilson added, “Earnings season allows investors a chance to overlook some of the noise and market storylines and delve into genuine statistics.”
“We only expect the corporate reporting season to highlight the inflation narrative this time.”
Meanwhile, traders are preparing for the end of an age of cheap money, as inflation continues to rise as a result of supply chain issues and growing demand.
“Despite rising inflationary pressures stemming from supply-chain constraints and surging energy prices, some investors plainly anticipate the global economy to grow at a good rate,” said Fawad Razaqzada, analyst at ThinkMarkets.
“While that may be the case, I would still err on the side of caution because forthcoming macro data and company earnings could indicate otherwise. Supply shortages may cause greater harm to the global economy than the markets anticipate “Razaqzada remarked.
Concerns over continually high price rises are prompting authorities to tighten their belts after a year and a half of ultra-loose monetary policies from the world’s central banks, which helped stimulate a recovery from the economic crisis and send shares surging.
Several countries have already begun, including South Korea and New Zealand, with Singapore joining on Thursday, but all eyes are on the Federal Reserve, which will release minutes on Thursday. The Washington Newsday Brief News is a daily newspaper published in Washington, D.C.