Last week marked the beginning of earnings season, with some companies posting results that exceeded market expectations. Richemont, for example, reported a 10% increase in third-quarter sales, reaching €6.1 billion, surpassing the €5.6 billion forecast. Growth was primarily driven by Europe, with a 19% increase in sales, much higher than the 6% expected, and the United States, where sales rose 22%, compared to the 10% forecast.
In China and other Asian regions, the results were less negative, with a 7% decline, much better than the 15% drop anticipated. This performance had a positive effect on other major luxury brands, such as Louis Vuitton and Hermes. Hermes, in particular, reached an all-time high in its market value, reflecting growing investor optimism in the luxury sector, which had previously been impacted by the slowdown in China, but is now benefiting from the recovery of other markets.
US Banks Exceed Expectations with Positive Results
In the United States, the results from major banks were very strong. JP Morgan reported revenues and profits that exceeded analysts' expectations by 20%, driven by increased financial margins due to higher interest rates. Goldman Sachs also performed impressively, with revenue surpassing expectations by $1.5 billion, benefiting from market appreciation and its strong presence in asset management. Citigroup, meanwhile, managed to reduce costs and benefit from the strong performance of the US economy, recording revenue growth and announcing a $20 billion share buyback plan.
This combination of strong financial results and positive future outlooks helped restore optimism in the financial markets, both for equity investors and those involved in public and private debt markets.
Tech Surge: AI Chip Demand Boosts the Sector
In the tech sector, TSMC, one of the world's largest semiconductor manufacturers, highlighted the growing demand for AI-related chips, which benefited not only the company itself but also other tech giants such as Broadcom, Microtechnology, Marvel, and the European ASML. The increasing demand for AI-driven technology is giving the sector a strong boost, with very positive prospects for the near future.
Expectations for Trump’s Presidency and Its Market Impact
Finally, next week promises to be significant with Donald Trump’s entry into the White House. He is expected to take several executive actions in the first hours of his presidency, including potential tariffs and protectionist policies. The market may experience volatility due to these actions, but diversified investors in the US market could benefit from them. Trump’s policies are primarily aimed at strengthening US companies, creating a more protectionist environment, which could benefit investors well-positioned in US assets, both in equities and corporate and government debt.
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