Global stocks moved higher on Wednesday as investors sifted through the latest round of better than expected corporate earnings reports and as the Federal Reserve offered an update to its monetary policy outlook.
European markets were all in positive territory, with the CAC 40 performing the best from the main benchmarks. French markets were up 0.54%. Germany's Dax and England's FTSE 100 both posted gains too, both trading 0.34% higher, with all but the healthcare sector trading in the green.
Across the pond, US stocks extended all- time highs as corporate earnings bolstered optimism about the strength of the global economy. Shares surged to trade at levels of all-time highs.
Traders will also keep an eye on the Federal Open Market Committee's two day policy meeting, which is due to end with an announcement late Wednesday. No rise in interest rate is expected, but the US central bank could suggest the process of trimming its balance sheet will begin relatively soon.
Markets lifted by earnings
Oil and gas stocks were among the best performers of the day thanks to positive earnings news. Tullow Oil moved higher after posting higher revenues then in the first half of the year.
British American Tobacco rose after news that more people are taking up smoking in parts of Asia and Africa.
There was good news from French carmaker Peugeot as the company produced positive financial reports. Its shares traded in positive territory
Shares in Advanced Micro Devices soared in pre-market action. The move came after the chip maker reported stronger than anticipated earnings and raised its guidance.
Likewise, telecom AT&T jumped after the company posted strong earnings.
So far, so good
More than 80% of S&P500 companies have delivered earnings that have beaten forecasts so far this reporting period, helping to support optimism in the global economy and pushing volatility to record lows. Investors are looking for guidance from the Fed on how it plans to unwind its bond portfolio, with policy makers seen keeping interest rates on hold as the US central bank meeting concludes Wednesday.
Results from Facebook, Deutsche Bank, BNP Paribas and UBS Group are among those expected this week.
Disclaimer:
This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.