Crude Oil prices continued to climb yesterday and this, coupled with the release of good corporate earnings, encouraged investors to take risks. North American markets and the loonie all recorded major gains yesterday, whereas U.S. bond yields retreated sharply.
An analysis of the corporate earnings of 258 of the 500 companies making up the S&P 500 revealed that their results are positive: despite a 21% pullback in earnings for Energy sector companies, the profits of the main U.S. stock market grew by 5.09% compared to the same period last year. In addition, 79% of companies exceeded analysts' forecasts and this in spite of a strong U.S. dollar, which rose strongly during Q4 of 2014.
While we await important employment figures on Friday morning, today we will focus on ADP Employment Change numbers to be released at 8:15 a.m., as well as the ISM Non-Manufacturing Composite Index at 10:00 a.m. After having recorded a few bullish days this week, crude oil prices are falling this morning, and China has just reduced the mandatory reserve rate required for banks, in order to stimulate its economy. Have a good day!
Emmanuel Tessier-Fleury
Range of the day: 1.2405 -1.2510