Global stocks rise with US exchanges closed as traders await earnings reports

Global equities rose and U.S. futures were flat on Monday as investors focused on upcoming corporate earnings and rising interest rates as U.S. stock exchanges closed on Martin’s holiday Luther King Jr.

In Asia, the Nikkei 225 NIK,
+0.74%
rose 0.7% in Tokyo while the Hang Seng HSI,
-0.68%
pulled back, with little movement generated by the People’s Bank of China’s decision to cut interest rates on its one-year facility by 10 basis points. The Stoxx Europe 600SXXP,
+0.79%
rose 0.6% in afternoon action.

In morning action, the S&P TSX 60 SPTSE,
+0.61%
gained 0.3% in Toronto.

US Equity Futures ES00,
+0.08%
have changed little in electronic action, after two weeks in which the S&P 500 SPX,
+0.08%
fell 2%. Nasdaq Composite COMP heavy technology,
+0.59%
fell 5% this year.

“Historically, the start of the year has been a poor indicator of what is to come for the investment markets,” said Stuart Kirk, global head of research and responsible investments at HSBC Asset Management. Since the global financial crisis, MSCI World’s average year-end return after seven negative trading days has been nearly 11%, outpacing the index’s performance after seven positive trading days, notes he.

Corporate profits are driven by the banking sector, with Bank of America BAC,
-1.74%
and Morgan Stanley MS,
-3.58%
ready to release the results, along with more airlines and streaming giant Netflix NFLX,
+1.25%
should report the results.

UK equities outperformed their US counterparts as investors turned to value sectors with rising bond yields. “We believe that this movement must continue over the next few months. The UK still looks excessively cheap, with a price-earnings ratio around 30% lower than the rest of the world, and the US excessively expensive with a valuation premium of up to 50%,” Rupert said. Thompson, chief investment officer at UK Wealth. Kingswood management company.

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