A strong start to the U.S earnings season has helped lift global equities with Asian shares rising overnight for the first time in 3 days. Gains seen within Japan were significant enough to offset the weakness in India and China, a result of on-going tightening of monetary policy by the respective central banks.
Citigroup’s numbers were the most eye-catching, posting a 42 percent increase in quarterly profit yesterday, whilst today investors are turning their attention towards Goldman Sachs Group and Johnson & Johnson. Around 73 percent of the S&P 500’s companies that have reported earnings have beaten forecasts.
With Ben Bernanke’s latest testimony to begin tomorrow, investors are trying to weigh up what the Federal Reserve’s next move on monetary stimulus will be. Last week Bernanke confirmed that the Fed plans on keeping monetary stimulus as accommodative as is required, sighting high unemployment and low inflation rates as areas that require further attention.