Global markets focus on busy data agenda

ISTANBUL 

While global markets follow a positive course fueled by strong balance sheets of US banks, a busy data agenda will be monitored on Friday.

Inflationary concerns gave way to the optimism after US banks on Thursday posted strong earnings in the third quarter that boosted investors' confidence in economic recovery from the coronavirus pandemic.

Bank of America's net income rose to $7.7 billion in the July-September period, up 57% from $4.9 billion during the same period last year.

Citigroup's income came in at $4.6 billion, rising 48.8% from $3.1 billion, while Wells Fargo's net income increased 59% to $5.1 billion from $3.2 billion.

Markets were also backed by the minutes of a Federal Reserve meeting on Wednesday and low jobless claims on Thursday.

Although the minutes showed the central bank could start tapering – the process of reducing its $120 billion in monthly asset purchases – as early as mid-November, the Fed left the door open to begin tapering in mid-December, which would provide markets an additional month of liquidity.

Initial jobless claims in the US fell to 293,000 last week, marking the first time that figure was below 300,000 since the early days of the coronavirus pandemic on March 14, 2020, according to the Department of Labor.

The markets on Friday will monitor statements from the Fed officials, Eurozone international trade in goods statistics for August, US retail sales for September, and US consumer sentiment for October.