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Earnings season picks up speed

In the new week, "earnings season" in the US and in Europe is gaining momentum. Additionally, financial markets are increasingly focusing on the next monetary policy decisions of the three major central banks, the Federal Reserve and the European Central Bank (on May 3 and 4) as well as the Bank of Japan (next Friday).

Alessandro Fezzi, LGT
Reading time
5 minutes
Corporate earnings season
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In the next few days, many blue chips will present their figures for the first quarter. The focus will be on Credit Suisse (today), UBS, Novartis or Microsoft and Alphabet (Tuesday), Roche, Beiersdorf or Meta (Wednesday), Deutsche Bank, Barclays, BASF, Sanofi, AstraZeneca as well as Merck & Co and Intel (Thursday), and Mercedes-Benz or Exxon Mobil, to name but a few. 

Credit Suisse reported asset outflows of around CHF 61 billion in the first quarter. Due to the write-off of AT1 instruments as part of the state-orchestrated takeover by UBS, a net profit of 12.4 billion francs resulted. The adjusted pre-tax loss for Q1, however, was CHF 1.3 billion.

On Wall Street, the stock indices trended sideways on Friday and lacked decisive new impulses. The Dow Jones Industrial went into the weekend at 33,808.96 points (+0.07%) and thus posted a moderate minus for the week. The S&P 500 closed 0.09% higher at 4,133.52 points and the Nasdaq indices were slightly higher than the previous day. Chilean President Gabriel Boric's announcement to nationalise the country's lithium industry caused a stir. Lithium is used in the production of electric car batteries. Chile has the world's largest lithium reserves and is the world's second largest producer of the metal after Australia.

The latest Purchasing Managers Survey in the US industrial sector showed an improvement in the assessment of the companies surveyed in April. S&P Global's April 2023 PMI rose to 50.4 (consensus 49.0) from 49.2 in March, signalling growth in the sector for the first time in six months. 

Asia-Pacific markets got off to a mixed start on Monday. Tokyo's Nikkei 225 gained 0.3%, while South Korea's Kospi slipped 0.75%. Hong Kong's Hang Seng Index fell 0.6%, giving back earlier gains. Mainland Chinese markets trended weaker. The Shanghai Composite and the Shenzhen Component each lost 0.5%. Stock exchanges in Singapore, Malaysia and Indonesia remained closed today for a public holiday. 

In the euro area, business sentiment improved significantly in April, according to the latest S&P Global survey results. The purchasing managers' index reached 54.4 points, the highest level in almost a year. However, service providers were more optimistic, while the assessment of the industrial companies surveyed was gloomier. Europe's stock markets did not make any big leaps on Friday, however, and investor sentiment remained subdued.

Corporate news in focus: Credit Suisse and Philips as well as Coca-Cola and Whirlpool from the US with Q1 figures.

Economic data in focus: Ifo Business Climate for Germany April (10:00 CET), Dallas Fed Industrial Indicator April (16:30).

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Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi,
Source: LGT Bank (Switzerland) Ltd.

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