Saxo Bank noterer, at de første regnskabsresultater for første kvartal viser, at europæiske virksomheder har vist mere positive vurderinger af den fremtidige indtjening end de amerikanske virksomheder.
What are we watching next?
Earnings reports this week. The interesting pattern so far in the Q1 earnings season is that European companies have released more positive outlooks (LVMH, SAP, ABB, Boozt etc.) and have reacted more positively than the US earnings.
This also matches what we observe regarding the rebound in earnings with the MSCI World performing better than the S&P 500 since Q4 2019. Charles Schwab posted the best quarter ever yesterday reflecting high client activity for the Q1, but the company did not provide any outlook for the year reflecting the uncertainty over whether retail investor activity will continue at same pace, which likely added to the 3% decline in the stock price.
Delta Air Lines shares were also down 3% yesterday despite the US airliner moved to being cash flow positive by the end of the Q1 and management making many positive comments about pickup in traffic and talking about strong pent-up demand.
Will sentiment change around Covid as world-wide daily cases are set for a record? The new rising wave of Covid cases in populous EM countries could dent sentiment next week as it appears we are within days of recording a new record daily case count for the virus, with India now registering the most daily cases at 216k vs. 144k just a week ago.
Even in the US, where vaccine efforts are advanced, a handful of states are registering case count rises and the politicization of the vaccine and concerns about safety is now seeing growing resistance by many to receive it.
