US MORNING: Mixed


  • Mixed sentiment in Asian and EU markets ahead of US open.
  • GBP falls as inflation misses expectations.
  • Bank of America and Goldman Sachs release earnings updates
  • Gold and WTI perform well.



Macro & FX
There have been some key earnings updates ahead of the US session. General risk sentiment has been mixed in the Asia and EU sessions. This came after the US administration stated that the tariffs may stay in place until after the US elections. Also in the UK, we had the latest CPI reading which sent GBP/USD lower. The reading came in at 1.3% vs analyst expectations of 1.5%. This pushed up odds of a rate cut in the UK to 60% vs 49% yesterday.

It has been a pretty mixed session in the EU with the FTSE100 rising 0.18% after some GBP weakness. The German Dax is trading just under flat.

This afternoon the US and China are also set to sign the “phase one” trade deal. The market has largely priced in this event but there could be more positive comments on the way.

Looking forward to this afternoon we have weekly DoE's (oil) and US PPI. We should also hear from Fed's Harker and Kaplan.

Goldman Sachs
Q4 EPS comes in below expectations of $5.52 at $4.69.
Revenue $9.96bln vs analyst expectations of $8.55bln.
Equties sales and trading revenue is 12% higher YoY.

Bank of America
Q4 EPS beats estimates of $0.68 to print at $0.74.
Revenue comes in marginally lower at $22.3bln vs exp $22.35bln.
Trading revenue is higher ($2.86bln) vs exp $2.76bln) and investment banking revenue was slightly better at $1.50bln vs exp $1.42bln.

Blackrock
Blackrock Q4 19 Earnings came in at EPS $8.34 vs exp $7.67 and assets under management grew to  $7.43 Tln  vs exp $7.28 Tln.

Commodities
In commodities markets gold is rising off the back of a softer dollar and a mild risk off tone. The precious metal trades at $1551/oz ahead of the US open. Spot WTI has also pushed 0.30% higher after reports that OPEC may need to extend the length of the current cut deal if they cannot meet in April. The next meeting could be scheduled for June, when they would readdress the situation.



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