Global markets rise before US earnings season

A woman walks in the rain past a securities firm in Tokyo. (AP)
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Updated 14 July 2020

Global markets rise before US earnings season

  • Equity traders are now looking to the corporate earnings season

LONDON: World stock markets advanced Monday, spurred higher by investor hopes over upcoming US earnings and a coronavirus vaccine, dealers said.

Asian and European equities bounded higher as investors followed a strong performance on Wall Street, though a spike in COVID-19 infections capped gains.

Oil prices fell on festering fears over demand-destroying coronavirus, and before this week’s expanded OPEC+ technical gathering of key crude producers which are expected to curb production cuts. The dollar traded mixed.

Equity traders are now looking to the corporate earnings season, which will reveal how companies fared during the second quarter — when economy-sapping lockdowns were imposed around the world.

“The mood remains upbeat as the new week kicks off and US earning season moves into focus,” said City Index analyst Fiona Cincotta.

“Given that in April and some of May, the US was in full-scale lock down, second quarter results bore the brunt of the coronavirus crisis.

“JP Morgan, Citigroup and Wells Fargo are first to set the scene, with Goldman Sachs, Netflix and Johnson & Johnson helping to give further insights as to the coronavirus impact later in the week.”

Investors also welcomed comments on Friday from the head of German biotech firm BioNTech who said a vaccine candidate would be ready for regulatory review by the end of the year, while Gilead Sciences said its drug remdesivir had been relatively effective in clinical trials.

“There was a sense of optimism circulating on the back of hopes for a treatment for coronavirus,” noted CMC Markets analyst David Madden.

London stocks won 0.9 percent in late Monday morning deals while Frankfurt won one percent and Paris gained 0.8 percent.

In Asia, Tokyo led the gains, adding more than two percent, while Shanghai, Seoul and Taipei were all more than one percent higher.

Hong Kong added 0.2 percent but bigger gains were pared on concerns about a fresh spike in infections in the city.

Trillions of dollars in government support is also keeping global equities well supported, but confidence is being strangled by the spread of the disease, with an explosion of cases forcing some countries to reimpose containment measures just weeks after easing lockdowns.

Egypt inaugurates $3.4M hyrdocracking complex to produce petroleum products

Updated 27 September 2020

Egypt inaugurates $3.4M hyrdocracking complex to produce petroleum products

CAIRO: A new hydrocracking complex worth $3.4 million was inaugurated on Sunday by the Egyptian president in a ceremony north of Cairo.

The complex will produce 4.7 million tons of high-value petroleum products as part of Egypt’s ambitious program to enhance its refining industry, a local report said. 

It was established in cooperation with the private sector to produce high-octane gasoline and diesel. It converts low-value diesel into high-quality petroleum products, which include hydrocracking units for diesel, charcoal, vacuum distillation, sulphur treatment and naphtha repair, according to a report by Egypt Today news website. 

Work at the site, located in Musturud of Qalyubia governorate, began in 2011 but was halted due to the political turmoil that broke out that year, the Egyptian president said. 

President Abdel Fatah El-Sisi asked Egyptians to realize “the size of benefits from a complex like this for Egypt in the field of petroleum,” in statements quoted by Youm 7 newspaper.