He said banking results this week generally outperformed expectations, with markets surprised by the extent of the bounce financials received from strong investment banking and trading activity that offset weakness in consumer-oriented businesses.
Economic data did little to clear things up for investors, especially as the US coronavirus case count resurges in some states, which could jeopardise the recovery. New claims for unemployment benefits last week were little changed compared with the prior week at 1.3 million, a historically high level that economists fear may accelerate again.In individual shares, Morgan Stanley jumped 2.6 per cent after reporting higher profits due to a strong trading performance, while Bank of America slid 2.7 per cent as profits tumbled after the bank set aside to large reserves for potentially bad loans.
Johnson & Johnson advanced 0.7 per cent as it reported lower profits due to the hit from coronavirus. The company said it was pushing ahead with trials for a vaccine for Covid-19.For daily updates on weekdays and specially selected content for the weekend. Subscribe to