Technical & Fundamental Oil Reports Specialists

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Can someone clean the windscreen please?

Published Friday, April 17th, 2015

Is deliberately cutting earnings expectations so that they can be beaten a form of market manipulation? It sounds like it but seemingly it is allowable in the equities markets because it is widely talked about and commented on. The consensus forecast is that 1Q earnings for S&P companies will come in -2.6% year-on-year and -2.8% on revenues. You might expect prices to fall as a result but a given level of earnings goes further when bond yields are tumbling under pressure from QE.

As Wall Street focuses on earnings, the risk of a Greek exit is firmly back on the agenda in the eurozone. Rumours that Greece has applied for a delay in its next repayment due to the IMF have been denied but are almost certainly true. For the Slovakian Finance Minister Greece is “close to the abyss”. For German Finance Minister Wolfgang Schauble Greece risks becoming “a bottomless pit” and he sees no risk of contagion if Greece exits. In fact he is standing by the door to make sure it is open.

to read the rest of the report, please click here

Posted by David Hufton