Asian shares extend rally, US earnings to test optimism

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SYDNEY: Asian shares crept towards five-month peaks on Monday (Jul 13) as investors wagered the US earnings season would see most companies beat ...

SYDNEY: Asian shares crept towards five-month peaks on Monday as investors wagered the US earnings season would see most companies beat forecasts given expectations had been lowered so far by COVID-19 lockdowns.

"JP Morgan, Citigroup, and Wells Fargo all report on Tuesday and there's a view that the bar has been set pretty low for them to report the almost obligatory 'better than expected' results - the absence of forward guidance from many firms notwithstanding."Wednesday sees Goldman Sachs and Bank of NY report, while Thursday has Netflix and Morgan Stanley.

If the S&P 500 was just"tech, health care, Amazon, Google" the index would now be 4,173, they wrote in a note, way above the current level of 3,185. If made up of everything else, it would be 2,924.Yields on US 10-year notes came close to record lows last week at 0.569 per cent and were last at 0.63 per cent.

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