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Earnings Season: How to trade Citigroup and Bank of America

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Citigroup and Bank of America two of the big beasts of US banking both reporting this week as Earnings Season kicks off. Peter Garnry, Head of Equity strategy at Saxo Bank, outlines his strategies for trading both firms ahead of their Q4 earnings reports.

Citigroup is heading in the "wrong direction" according to Peter who thinks the firm has too much exposure to emerging markets, just as the commodity rout has been hitting growth in EM territories.    

However, Peter remains bullish on Bank of America: "Analysts anticipate earnings per share of $0.31 compared to EPS adj. $0.27 a year ago. If we strip out all the one-off items, the underlying business in Bank of America is improving on the backdrop of a stronger US economy. "