European benchmarks opened strong despite lingering concerns over higher interest rates
All European benchmarks opened in the green on Thursday, extending the bullish sentiment registered overnight in China and, led by miners, amid decreasing risk aversion from investors. Despite lingering concerns related to the prospect of higher interest rates and – more importantly – withdrawn liquidity in the US, investors have temporarily switched focus towards corporate results. Investor sentiment was mixed following the first patchy results from the US banking sector after Bank of America topped expectations, but JPMorgan as well as Goldman Sachs disappointed. However, the earnings season will continue to roll for banks with a new batch of corporate results today, alongside some large caps from other sectors like Netflix and Alstom in Europe. In addition, investors will also try to get a clearer vision of where economies are heading today, as another slew of significant macro data is due, including the EU CPI report, US jobless claims and Existing home sales, as well as the highly awaited US Crude Oil inventories.
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