Earnings support Wall Street

A solid performance for US earnings has helped Wall Street to rise even as Europe struggles, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

European stocks linger in the red

While hopes of an EU-US trade deal have helped to support Europe this week, that mood appeared to be weakening on Friday. Profit warnings from several European firms have meant that sentiment has remained under pressure, though some buying at the lows has been seen. Despite NatWest’s healthy gains today, the FTSE 100 has finally paused after its strong run this week.

Trade deal hopes and earnings boost Wall Street

US traders seem to be taking a more optimistic view of the trade situation, plus there is a bit of a relief rally around the fact that yesterday’s Trump visit to the Federal Reserve didn’t result in any more fireworks. Earnings season continues to provide a reason for optimism too, a third of the S&P 500 having reported so far and almost 80% of those beating estimates. The rally faces a bigger test next week, as July goes out with a bang thanks to the Fed rate decision and a barrage of earnings, including more megatech names.