Market Tips: Earnings Beat Very Low Expectations
Global stocks held close to 9-month highs on Wednesday with Europe seeing some falls in choppy trading on cautious words from Federal Reserve Chairman Ben Bernanke, who said unemployment would remain high into 2011.
Shares had a 7-day winning run on better-than-forecast results from companies, but experts tell CNBC that actually analysts' expectations were very low.
Be Analytical of Strong Earnings Results
Company earnings need to be analyzed case by case, says Karl Eggerss, chief trader at LafferFrishberg.com. He tells CNBC that U.S. companies are "beating" very low expectations.
US Will Lead Recovery
The U.S. has only spent a quarter of its stimulus package and the rest will kick in in the coming months to help the economy, says Michala Marcussen of Societe Generale Asset Management. She also expects a second, but smaller, stimulus plan in 2010 to ensure a sustained U.S. recovery.
Signs of Economic Pick-Up Seen
There are clear indicators of a pick-up in demand in the economy, says Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors. He tells CNBC that these include the turnaround in the Chinese economy, U.S. housing sector and the auto sector.
Recovery Expected in 2010
The economy will likely recover in mid 2010, says Meg Browne, senior currency strategist at Brown Brothers Harriman.
US Rate Hike Unlikely in 2009/10
David Mann, FX strategist for global markets at Standard Chartered Bank does not expect the Fed to hike rates until the jobs front improves.
Long on Techs & Natural Gas
Karl Eggerss, chief trader at LafferFrishberg.com tells CNBC that he is long on techs and natural gas.
Take Profits on Property Stocks
It is time to take profit on Chinese and Hong Kong property stocks, says Alex Wong, director of asset management at Ample Capital.
Valuations Are No Longer "Undemanding"
Valuations in the Asian region are no longer "undemanding", says Daphne Roth, Asia head equity research at ABN Amro Private Banking.
Boom and Bust for China Construction?
Investing in China's large construction IPOs may be a good trade, but it's unclear whether they are a good investment long term, Julian Pendock from Senhouse Capital told CNBC. Pendock also considers Fiat's earnings.