Skip to comments.Global stocks hit 2-week high on earnings optimism
Posted on 07/12/2010 4:58:17 PM PDT by NormsRevenge
LONDON (Reuters) World stocks briefly hit a two-week peak on Monday as expectations rose that U.S. corporate earnings this week would point to a sustainable economic recovery in the world's biggest economy.
The euro slid as jitters grew ahead of the results of European bank stress tests due later this month and the yen slipped after Japan's ruling coalition lost its upper house majority in Sunday's election, putting the government's policies to deal with the country's massive debt at risk.
Wall Street had its best week in a year last week ahead of this week's key earnings, which include Alcoa (AA.N), Intel (INTC.O), JP Morgan (JPM.N), Google (GOOG.O), Bank of America, GE (GE.N) and Citi (C.N).
"In view of the concerns that the markets and investors have had about the loss of economic momentum, these results will be pretty important. If these earnings are good, this market is going to fly," said Mike Lenhoff, chief strategist at Brewin Dolphin.
"Some of the pre-announcements have been quite encouraging. So it looks as if it's going to move in the right direction." MSCI world equity index (.MIWD00000PUS) hit a two-week high of 280.79 before erasing gains to stand down 0.1 percent.
(Excerpt) Read more at news.yahoo.com ...
this looks good as well...
This is a crock. Name one reason why American, European or Asian economies are recovering. I surely don’t see it in finished product orders, raw material orders (Alcoa is a fluke or the company is in Onada’s hip pocket), transportation/shipping or energy demand. With so many unemployed in America and around the world what would generate the demand? Oh, and let’s not forget that foreclosures continue apace.
As I recall, last week the market was down due to a lack of consumer confidence. Exactly what happened since then to change things?
These people are smoking crack. There is NO recovery happening. 5.7 million homes are in the shadow inventory of the banks and The FMs.