As earnings season heats up, Jim Sinegal from Morningstar, says that so far results from the finance sector have been disappointing "because of the legal expenses big banks have to pay". He thinks Wells Fargo has "most potential going forward".
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The Bank of Spain released its Q1 GDP forecast yesterday. The central bank estimates that the Spanish economy grew 0.4% q/q in the first quarter, 0.1 percentage point higher than the current consensus estimate of 0.3%. The Bank of Spain is traditionally very good at estimating GDP growth.
The central bank further notes that it expects private consumption to have risen in Q1, in which case it would be a fourth consecutive quarterly increase.
Spain's Q1 GDP report will be released on April 30 at 07:00 GMT.
We continue to trade in incredibly tight ranges as market complacency remains widespread, but next week’s FOMC meeting and next set of key US data may finally shake the USD majors out of the vice grip of recent ranges.
The broader Spanish economy may be recovering, but the housing sector remains in deep distress. Total mortgage lending was down 11.6% y/y in February (-25.8% in Jan.) while approvals dropped no less than 33% (-32.4% in Jan).
The rating company Standard & Poor's has cut Russia sovereign debt rating to BBB- from BBB, the last investment grade step before junk status, having had a negative outlook for a month.
The geopolitical tension in Eastern Europe has seen some several countries (lead by the US) hit Russia with sanctions, and it seems there are more to come. S&P says "[the] tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects".
Quiet data day gives us the April's final US consumer sentiment. The troika is expected to find in its review of the Greece's bailout programme that the country has fulfilled its part of the bargain and is eligible for a new tranche of the bailout money. Today's real focal point will be the suddenly heightened crisis in Ukraine.
I like your analogy with Moscow in the 90s, Juhani. But remember Nathan Rothschild making a killing on Waterloo? (Though that's arguably apocryphal...)
Just three months after the launch of the new TradingFloor.com, the highly respected London-based International Finance Magazine has named the site as the most innovative social trading platform.
And now for the weak data: US initial jobless claims rose 329,000 last week vs. 315,000 expected while the prior figure was revised 1,000 higher to 305,000. Continuing claims dropped to 2.68 million from 2.751mn.
Boom! US durable goods orders rose 2.6% m/m in March vs. 2% expected and 2.1% prior. Core orders (ex transportation) climbed 2% vs. 0.6% and 0.1% prior. Even more importantly for GDP capital goods shipments climbed 1% as expected while February was revised to 0.7% from 0.5%. And key to further (GDP) investment capital goods orders ex. defense and aircrafts jumped 2.2% vs. 1.5% expected while February was revised to -1.1% from -1.3%. Solid, solid report...
