The S&P/ASX 200 Index finished the week up 0.7%. The best performer was the Materials sector, up 3.8% and worst performer was the Property Trusts sector, down 1.3%.
As the release of US quarterly earnings gets underway, the market is assessing if the expected 17% average EPS growth rate is being met. The bar is even higher for US banks, where the market is looking for earnings to increase 28% on the same time last year.
If you take out the capital markets business and the one-time events, JP Morgan, Wells Fargo and Citigroup have fallen short of expectations. Rising interest rates, market volatility and tax cuts have not produced stronger results and the banking sector sold-off overnight in new York trade.
Bank of America and Netflix will be key results during Monday’s session.