· Asian shares climb, U.S. earnings to test dogged optimism
Asian shares climbed toward five-month peaks on Monday as investors wagered the U.S. earnings season would see most companies beat forecasts given expectations had been lowered so far by coronavirus lockdowns.
MSCI’s broadest index of Asia-Pacific shares outside Japan added , having climbed sharply last week on the back of surging Chinese stocks, which jumped another on Monday.1.2%2.3%
“Ongoing grim U.S. COVID-infection news continues to be summarily ignored in favour of ongoing optimism regarding the time-line for the discovery and rapid roll-out of an effective vaccine and/or more policy support for asset prices and the U.S. economy,” said Ray Attrill, head of FX strategy at NAB.19
· China stocks rally, start-up index at over year high on upbeat result hopes4-1/2-
China stocks firmed on Monday, with the tech-heavy start-up index hitting its highest level in more than four-and-a-half years on hopes of earnings improvement.
At the close, the Shanghai Composite index was up at , while the blue-chip CSI index was up 1.77%3,443.293002.1%.
The start-up board index led gains, rallying to its highest since Nov. , It climbed in the previous week, its best since its launch in , and has gained so far this year.4% 262015. 12.8% 201061%
· Alibaba's Jack Ma sells billion worth shares, stake dips to filing$9.64.8%:
Alibaba Group Holding Ltd co-founder Jack Ma has cut his stake in the company over the past year to from , cashing out around billion at its current share price, the firm’s annual filing released on Friday showed.4.8%6.4%$9.6
The divestment comes as Ma retired as the Chinese e-commerce company’s executive chairman in September and pulled back from formal business roles to focus on philanthropy.
Alibaba did not disclose the average selling price of his divestment. Its share price has risen around since Ma reported his holding in the company a year ago.40% 6.4%
· Nikkei marks 1-month closing high on virus drug hopes, autos gain
Japan’s Nikkei share average rose to a one-month closing high on Monday, tracking a rally on Wall Street as a positive analysis on a potential COVID-19 drug offset investor fears over surging virus cases.
The benchmark Nikkei share average settled 2.22% higher at 22,784.74, its highest close since June 10, also helped by gains in auto stocks on upbeat industry data from China. On the index, there were 219 advancers against six decliners.
The broader Topix rose 2.46% to 1,573.02, with all 33 sector sub-indexes on the Tokyo exchange closing higher.
· European markets advance, shrugging off surge in coronavirus cases; Neles up 35%
European stocks traded higher Monday despite the backdrop of surging coronavirus cases in some parts of the world, and as investors approach earnings season.
The pan-European Stoxx climbed in early deals, with autos adding to lead gains as all sectors and major bourses entered positive territory.6000.7%2%
European markets were tracking their global counterparts higher despite the surge in coronavirus cases in the U.S. and beyond; Florida reported new coronavirus cases on Sunday, the highest single day total for any American state since the pandemic began.15,299
Earnings season is set to kick off this week with big banks and others reporting their quarterly results. JPMorgan, Citigroup and Wells Fargo are scheduled to report on Tuesday. Pepsi will report earnings on Monday before the market open. There are no major earnings or data releases from Europe on Monday, however.
· Market heads into worst earnings season in 12 years amid worries virus is slowing recovery
The worst earnings season in years is about to begin, and it’s possible the stock market could shrug off the sharp profit decline, as long as companies see some signs of a recovery ahead.
Earnings are expected to fall by 44%, the worst quarterly performance since the Great Recession when S&P 500 profits fell by 67% in the fourth quarter of 2008, according to Refinitiv I/B/E/S data. It is also expected to be the worst quarter of the pandemic crisis, revealing the extent of the earnings damage as the economy slumped more than 30%.
Major financials JPMorgan, Bank of America, Goldman Sachs and Wells Fargo are among the financial firms reporting. Pepsico starts off the week with its report Monday, and Johnson and Johnson, Abbott Labs and Netflix also report.
The financial sector is expected to see a more than 52% decline in profits, according to Refinitiv.
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