Connect with us

Trade

Big banks, big opportunity? Earnings season kicks off

Published

on

READ LATER - DOWNLOAD THIS POST AS PDF

Each quarter, publicly listed companies share their earnings reports with their investors and the general public. These reports provide insights into each company’s performance and more often than not, impact their stock prices. Over the next six weeks, companies will be sharing their reports for the fourth quarter of 2018 (Q4), with major banks kicking off the earnings season.

Reporting earnings in a challenging market

This earnings season has a very meaningful backdrop, as Wall Street has been heavily impacted by external forces recently. Firstly, the Fed’s drive to hike rates over the past year, with four rate hikes in 2018, has put pressure on the market.

Perhaps the most important factor causing Wall Street to struggle recently has been the rising yield of 10-year bonds. These bonds, issued by the US Treasury, present a relatively low-risk investment option and produce steady returns twice a year. When the interest produced by these bonds is high, it could push investors away from the stock market, as the safer option is now also high yielding. Recently, 10-year bond yields have been giving investors interest rates of 2.73%.

Entering this earnings season, many companies face the challenge of remaining a lucrative investment option for their shareholders. For some companies in the financial sector, this season might be especially crucial, as they have to recover from less-than-impressive results last quarter.

Banking on earnings

The last time around, several large financial institutions disappointed their investors by displaying subpar performance. Wells Fargo is one of the companies that is hoping for a turnaround. The financial powerhouse has been in a slump over the past several quarters, still trying to recover from a scandal of two years ago, in which it was revealed that its employees created fake accounts for clients, in order to meet sales targets. Last July, the company experienced a 1.3 % increase in its stock price, following the Q3 earnings report that exceeded expectations.

Indicative prices for illustration purposes

Another financial institution that is looking to make a comeback is Citigroup, which experienced a 2.5% increase in stock price following its Q3 earnings report. However, the financial sector was not all negative last quarter. Morgan Stanley was able to beat market expectations and its share price spiked 5% following better-than-expected results. These financial institutions, alongside other major players, such as JPMorgan Chase and Bank of America, have a lot to prove this quarter.

Investing in the financial sector on eToro

TheBigBanks CopyPortfolio is one of eToro’s first Market CopyPortfolios, offering investors a thematic investment opportunity in a fully allocated portfolio comprised of leading banks and financial institutions. Like all CopyPortfolios, TheBigBanks was created and is managed by eToro’s Investment Committee. The Portfolio is rebalanced periodically by the committee in an attempt to optimise performance.

The upcoming earnings season will no doubt impact markets, and since the financial sector is the first major segment to report, investors will be watching it closely over the coming weeks. To stay posted on recent and upcoming earnings reports, follow the eToro Earnings Reports Calendar.

Past performance is not an indication of future results. Data presented is less than 5 years old and may not suffice as a basis for investment decisions. This is not investment advice. Your capital is at risk.

Trade

Facebook has launched a white paper today for it’s planned cryptocurrency – Libra

Published

on

By

READ LATER - DOWNLOAD THIS POST AS PDF

11 things you need to know:

  1. Libra’s mission is to enable a simple global currency and financial infrastructure the empowers billions of people.
  2. Libra is a stablecoin which will launch in H1 2020. This will be fully backed by a reserve of real assets (a basket of bank deposits and short-term government securities). The balance of the basket can be changed if needed to offset major price fluctuations.
  3. Facebook won’t control Libra. They get one vote like other founding members of the independent Libra Association headquartered in Switzerland. This provides a level of decentralization and they hope to have 100 well geographically distributed and diverse members by launch. Other founding members include MasterCard, Visa, PayPal and Uber as well as not-for-profits such as Women’s World Banking and academic institutions. They have all invested $10million each.
  4. It is built on the Libra blockchain which is open-source and any developer can build smart contracts using the Move code language. Move was created to prevent assets from being cloned, to facilitate exchange into fiat and to make it easier to write blockchain code that follows an author’s intention without introducing unintended bugs. The prototype of the blockchain – the testnet – launched today so it’s in beta mode until the launch in H1 2020.
  5. The Libra blockchain is managed by nodes, which are servers that help operate the blockchain. Each founding…
Continue Reading

Trade

Cryptocurrency Exchange Analysis: eToroX Exchange Review June 2019

Published

on

By

READ LATER - DOWNLOAD THIS POST AS PDF

eToroX is a crypto exchange that is a subsidiary of eToro social trading platform. eToroX has been granted a distributed ledger technology (DLT) licence from the Gibraltar Financial Services Commission (GFSC). eToroX represents a bridge between the traditional investing and the new digital world.

  1. Supported currencies

eToroX offers 17digital assets: 5 cryptocurrencies and 10 Tokenized Assets. eToroX is in the midst of creating numerous variations of tokenized and digital assets. Seems like eToroX added the most popular cryptocurrencies to the current listings on its platform. The same strategy has also been used by other exchanges, in their early stages. eToroX’s current range of trading pairs and tokenized assets is surprisingly sizable, considering it was only released recently.

  1. eToroX exchange Fees & Limits

Trading fees refer to the actual cost of carrying out a trade (buying/selling) on eToroX exchange. The fees associated with a cryptocurrency exchange play an important role for users in evaluating the cost of trading relative to other exchanges in the market. Exchange fees currently are:

Withdrawal…

Continue Reading

Trade

eToro sponsors Moto2 team American Racing KTM

Published

on

By

READ LATER - DOWNLOAD THIS POST AS PDF

– Announcement is the latest stage in eToro’s sports sponsorship programme, following landmark deal with 7 Premier League clubs in 2018/19

eToro, the global multi-asset investment platform, today announced its latest sponsorship deal, signing on as a partner with Moto2 team, American Racing KTM. eToro will become an Official Sponsor to the team and its two promising young riders, Iker Lecuona (@ikerlecuona_27) and Joe Roberts (@joerobertsracer) for the rest of the 2019 season.

Moto2 is part of the internationally renowned MotoGP World Championship, with races held in nearly 20 locations across the world each year. Races are attended by around 100,000 spectators each round, with an online fan base of up to 100 million viewers per event. As a team sponsor, eToro will gain further exposure for its brand through an extensive range of marketing opportunities, including bike and team clothing branding, hospitality and digital rights.

Yoni Assia, CEO and Co-founder of eToro, said: “Moto2 is just like us. Fast, exciting and full of young talent on the way up. It’s a great opportunity to contribute to the development of this team, and particularly its two young stars, Iker and Joe. MotoGP has an incredibly passionate, devoted fan base which is part of the reason this partnership appealed to us so much. We’re going to enjoy working with everyone and supporting them across the season.”

Eitan Butbul, Principal Owner…

Continue Reading

Elite