Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
European stocks initiated the session extending yesterday’s recovery. Investors will respond to the results of Credit Suisse, ARM Holdings and SAP. The Swiss bank reported a quarterly profit growth of 23% (1050 M.CHF), surpassing analysts’ expectations of 1030 M.USD, in that, among the various activities of Credit Suisse, the good performance of the financial assets trading unit was highlighted. The German SAP announced that the operating income in the 1st quarter reached 1060 M. €, roughly in line with the 1070 M. € anticipated. Revenues totaled the 4500 M. €, above the estimated 4300 M.€. Also in the technology sector, ARM Holdings, an English company that supplies components for smartphones announced quarterly revenue of 227.5 M. £ compared to the estimated 224.4 M. £. Subsequently, the publication of the ZEW index, which measures the sentiment of German financial agents, may have a superficial impact on the session trend. The bottom line will continue to be the situation in Greece. The market is expected to remain sensitive to any news or rumor regarding this matter.
Yesterday US markets closed higher, driven mainly by China’s central bank decision to reduce the reserves on deposits. The positive reaction of US markets shows how dependent the stock market is from the Central Banks’ political economic measures. The central theme in the current environment continues to be the earnings season. Morgan Stanley reported an adjusted EPS of 0.85 USD, exceeding 0.78 USD estimated by analysts. Revenues amounted to 9780 M.USD, also beating forecasts of 9170 M.USD. The good performance was transversal to all units of the bank, especially asset management, which form the core of the current strategy of Morgan Stanley. The bank’s shares appreciated 0.57%. In addition to Morgan Stanley, most companies which reported their accounts yesterday beat analysts’ estimates. The constituents of the S & P 500 that have reported their accounts, 77% had earnings higher than expected but only 46% were able to do it in terms of revenues. On average, corporate profits have been 5.80% higher than analysts’ estimates. In terms of revenue, none of the oil and mining companies was able to meet the analysts’ estimates. On the positive side, almost all pharmaceutical companies reported revenues that beat estimates. Today, attention will mainly focus on results of various Companies and the maturity of the oil futures.
Asian markets closed with sharp gains, because of Wall Street rise and also China’s Central Bank decision to reduce the reserves on deposits from 19.50% to 18.50%