The Rally Picks Up Steam - 17.10.2012
Positive quarterly reports from American banks coupled with hopeful news coming from Spain lead to the massive rally in majority of risky assets. According to Tuesday session results, the leading stock market indicators from both sides of the Atlantic have gained more than 1%, while Asian indicators have reached 5-months highs.
As we expected, the bank sector of the USA shows satisfactory results. The net profit of Goldman Sachs in the third quarter is $2.85 per share that is significantly higher than the Reuters consensus, $2.12. Technology companies such as IBM and Intel also reported the data better than it was expected. Risk appetite is reinforced by Moody's decision to keep Spanish rating on the investment level and the Financial Times report saying that Madrid is ready to request the financial aid.
Out of important news the Bank of England minutes and the UK Jobless Claims data (10:30 CET) can be remarkable.
S&P500 Index, 4-hours chart