Crucial test of equity sentiment as monster earnings week awaits

Last week was the first real test in weeks of sentiment in equities with Friday showing buyers are still controlling the game. Earnings have had a similar pattern of generally disappointing and the majority of companies skipping their outlooks as the economic environment is too uncertain. Technology stocks continue to be bid higher and volatility futures are close to be in contango for the first time in almost two months. Italian government bonds (BTPs) are also bid this morning as Italy is preparing to open its economy again. Many small positive signs although the oil market is still sending distressing price signals due to massive demand and supply imbalance.