Both contributed to an improved outlook for the global economy. MSCI's broadest index of Asia-Pacific shares outside Japan rose 2.0% to reach a five-month high. South Korean shares gained 2.2%, while Chinese blue chips and Hong Kong shares rose by 0.7% and 1.4%, respectively. The yuan also saw a boost, reaching its highest point since mid-August, under 6.8000.
US Earnings Season Kicks off With Concerns Over Negative Growth
The start of the US earnings season this week sees the major banks releasing their results, with analysts fearing that there will be no year-on-year growth in overall earnings. Goldman Sachs analysts predict that, excluding energy, S&P 500 earnings per share will fall by 5% due to margin compression.
They also expect downward revisions to consensus 2023 earnings per share forecasts, with margin pressures, taxes, and the possibility of recession presenting greater downside risks. Reports also indicate that Goldman Sachs will begin cutting thousands of jobs across the company from Wednesday as it prepares for a challenging economic environment.
