By Andrew Trimble
U.S. earnings, Chinese GDP data and BoC tightening
U.S. corporate earnings season gathered momentum this week with traders encouraged about the outlooks for American companies. According to FactSet, the blended corporate earnings of S&P 500 companies are expected to be 10.2% in Q4 2017 with all eleven sectors expected to report earnings growth for the quarter. Turning to economic news, the unfolding global growth story was further aided by news out of China that its economy expanded at a-better-than-expected 6.9% last year, the first acceleration in seven years. On Wednesday, the Bank of Canada increased interest rates by a quarter-percentage point to 1.25% on the backs of strong employment data, inflation close to target and an economy that’s operating at near-full capacity. One question mark on the horizon for the bank is the uncertainty surrounding NAFTA with trade talks set to resume in Montreal next week. Also in Canada, a summit held in Vancouver Tuesday to determine strategies to reign in North Korea ended with a declaration signed by 20 allied countries to ratchet up economic sanctions and political pressure until Pyongyang abandons its nuclear ambitions. Turning to U.S. political news, lawmakers remained split over immigration policies which could force a partial government shut down this weekend unless a short-term spending bill is passed to keep the doors open. In the eurozone, Greek parliamentarians approved the latest package of economic reforms Monday which clears the way for post-bailout discussions to begin as early as April after eight years of economic and political turmoil. Looking ahead, there are monetary policy meetings in Japan and the eurozone next week as well as Q4 GDP data from the U.S.