S&P 500 Looks to Midterms and Trade Wars, DAX and FTSE Elsewhere

SP 500

Fundamental Forecast for Equities: Bearish

  • Equities have shed some geopolitical concerns but midterms look to command the spotlight next week
  • Earnings season has largely been a boon for US equities with many positive results across sectors despite disappointing reports from FANG
  • Trade wars will continue to dominate headlines and pose as a constant risk

SP 500 Optimistic on Trade, Awaits Midterm Elections

After an incredibly volatile October, November brings with it the opportunity for equities to regain their footing. Earnings season has become somewhat of a tailwind for equities as many corporations delivered a positive surprise. At this time, over 50% of the members in the SP 500 have reported and 84% of them have met or exceeded analyst expectations. While the broader performance may be quite strong, FANG earnings were rather disappointing and risks in other areas still remain.

View how our clients are positioned on equities and other assets with IG Client Sentiment Data.

The headline risk for equities next

Article source: https://www.dailyfx.com/forex/fundamental/article/special_report/2018/11/02/SP-500-Looks-to-Midterms-and-Trade-Wars-DAX-and-FTSE-Elsewhere.html