Wall Street is fixated on a quarterly earnings release that has been described as more important than the US Federal Reserve. Its outcome may justify or undermine the sharemarket’s rally.
We’re led to believe that the higher the risk, the higher the return. But that’s not actually how stock markets have worked, and no one can explain why.
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Yet powered by the US tech euphoria, global equities are approaching records, haven assets are out of favor and even neighboring Asian markets are relatively unscathed.
“China seems to be divorced from the rest of the world,” said Steve Sosnick, chief strategist at Interactive Brokers. “Part of the lack of equity response is that the global economy is doing OK without China. The prior reactions occurred when China was a bastion of growth in a shakier world.”