Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Early Morning Call: GBP gains as market awaits Chancellor's new fiscal measures

Sterling has risen against the dollar, euro and yen this morning following the UK government's second fiscal u-turn.

Video poster image

Equity markets

Equity markets start the week in negative territory.

In the Asia-Pacific region, Japan’s Nikkei 225 ended the session 1.16% lower, Australia S&P/ASX 200 fell 1.40%.

In Europe, the main indices started the session around 0.5% lower.


On the currency market, sterling rose against the dollar, the euro and the yen this morning following the nUK government's second fiscal u-turn announced on Friday.

The yen remains weak, near 32-year lows against the dollar. Currency traders are waiting for signs of another Bank of Japan (BoJ) intervention to support the Japanese currency.

US earnings

Last Friday, four major US banks opened this quarter's earnings season. If some of them beat estimates, they all reported a fall in profits as investment banking was hit hard.

At lunch time it will be Bank of America's (BofA) turn to report its earnings for the third quarter (Q3). Analysts expect on average earnings of 77 cents per share. That is to be compared with earnings per share (EPS) of 85 cents in Q3 2021. Revenue is expected to rise by 3.3% of $23.53 billion.

Investors are particularly waiting for details on the bank's investment banking division. Shares of Bank of America, an all-session stock on the IG platform, have fallen about 31% over the past 12 months.

Also note that the last of the US big banks, Goldman Sachs , is scheduled to report tomorrow. Analysts anticipate earnings of $7.80 per share on revenue of $11.39bn. According to the Wall Street Journal, the bank plans to combine its investment banking and trading divisions, and merge asset and wealth management.

Outside the banking sector, the US earnings season is gathering pace this week. Tomorrow after the US closing bell Netflix reports its numbers. Besides expecting earnings of $2.18 per share and revenue of $7.8bn, analysts perhaps more importantly await subscriber figures. Last quarter the market was pleasantly surprised when Netflix revealed a loss of 970,000 subscribers, lower than the two million forecast.

Attention will also be given to the group's guidance on its advertising strategy. Last Thursday, Netflix announced a new ad-supported subscription plan of $6.99 per month. The plan will be available in 12 countries including the UK, US, Canada, Mexico and Australia. Note for comparison that Disney+ charges $7.99 at its budget end with ads.

On Wednesday, also after the bell, Tesla is due to publish record revenues on the back of record high deliveries. The street expects the electric car maker to post earnings of $1.04 per share, and a 62% increase in revenue year-on-year (YoY) to $22.65bn.

Q3 saw an increase in production at Tesla's plants in Texas and Berlin, and Covid restrictions that impaired production at its Shanghai plant have been lifted. Apart from revenue, this should also help margins to recover after the 500-basis point dip to 27.9% encountered in the second quarter, although higher material cost could partly pare gains.

Other US earnings expected throughout the week include Johnson & Johnson on Tuesday; IBM, Procter & Gamble and Alcoa on Wednesday; American Airlines, Dow and Philip Morris on Thursday; and American Express, Schlumberger and Verizon on Friday.


Oil prices have shown modest gains this morning.

Last Friday, Baker Hughes total rig count rose by seven to 769. The number of oil rigs in operation increased by eight to 610, while the number of operational gas rigs fell by one to 159.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Start trading forex today

Find opportunity on the world’s most-traded – and most-volatile – financial market

  • Trade spreads from just 0.6 points on EUR/USD
  • Analyse with clear, fast charts
  • Speculate wherever you are with our intuitive mobile apps

See an FX opportunity?

Try a risk-free trade in your demo account, and see whether you’re onto something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See an FX opportunity?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Get spreads from just 0.6 points on popular pairs
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See an FX opportunity?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.