Pre-Market ReviewGlobal Stocks Slightly Up

Global stocks pushed higher on Tuesday in light of one of the most uncertain earning seasons on record after the Coronavirus pandemic upended the world’s economy.

Volumes are more than 30% below average in many Asian markets as traders braced for news from global heavyweights including JPMorgan and Wells Fargo. Stocks were higher in the majority of Asian markets, including South Korea and Japan. Futures for the US in Europe also pushed higher.

As earnings season kicks off this week, traders are looking for a sense of just how badly the Coronavirus outbreak will hit some of the major US and European companies. We are likely to see several dividends cancelled, earnings predictions missed, and forward guidance almost completely wiped out.

With the outbreak causing chaos around the world, investors seem to have been flying blind when it comes to global stocks.

Global stocks on the rise?

The stock market, including the Dow Jones and S&P 500 paint a slightly confusing picture as they tend to rally on the health aspect of the virus rather than the economic aspect at the moment. With that said we are seeing numbers in Europe start to fall as discussions get underway about ending lockdowns in the likes of Spain and Italy.

What we must be certain of is that once the health aspect of this virus has subsided, the economic impact will be just as aggressive, which could cause indices to drop. Earnings season will finally give us a chance to look at how the companies that make up these indices are faring. This week it will be US banks and financial firms which take centre stage led by JPMorgan, Citigroup, Bank of America, BlackRock, Goldman Sachs and Wells Fargo.

Tuesday will also see the release of earnings from airline Delta. Delta airlines is considered one of the more reliable airlines heading into this crisis, and today’s figures could give us an indication of how well placed there will be once the crisis finishes.

Oil markets are still languishing around the $22 per barrel level as we get your more confirmation that the historic oil output deal brokered last week is just not enough to save the oil price. There was also an offset as demand finally saw a drop, which further negated the measly output cut.

The Eurozone is also putting itself at risk with the rescue package possibly in danger. The Eurozone has failed to effectively fight off any of the major crisis that has affected it since its inception in 2000. The political infighting is leading to the question of the legitimacy of the single currency yet again as the virus outbreak threatens to hit European economies harder than any region.