European stocks rise on strong earnings, US retail sales and bank numbers in focus
Posted 5 hours agoSharePrint
European stocks are charging higher after the US earning season kicked off on the right foot. US banks are often considered a proxy for the broader economy. As a result, their earnings are strong drivers of sentiment.
The upbeat numbers served to reinforce expectations of a strong US economic recovery. If the world’s largest economy is performing well, this is good news for the global economy and risk sentiment.
The European economic calendar is quiet this morning, with in-line inflation data from Germany providing little impetus.
forecasts
AUD/USD and NZD/USD Fundamental Weekly Forecast – Could Struggle as Investors Become More Risk AverseOver the short-run, however, the key price drivers will be the direction of U.S. Treasury yields and investor demand for riskier assets.
Jan 18, 2021 11:19 AM GMT
Last week, rising U.S. Treasury yields and a drop in demand for riskier assets pressured the Australian and New Zealand Dollars. This week, these two factors should remain near the top of the list of catalysts driving the price action, however, investors will also have a chance to react to important economic data from both countries that could have an impact on central bank policy.