Alex Bobrov
Stock exchange news. American stock indexes continue growing, being driven by the optimism, caused by the progress in European movement as well as strengthening of European Financial Stability Facility, especially 10 steps that have been suggested by the President of Euro Group Jean-Claude Juncker.
Juncker’s suggestion foresees taking certain measures for regular breakers of budget discipline, broadening the powers of European Commission, dividends for tax-payers that take part in bank bailout program, and other steps. It is evident that purchasing in the condition of increasing growth was a part of a game, as, according to analytics, investors were trying “to catch the train” of strong rally.
S&P500 index has risen by 12% from its average daily minimum last Tuesday, which is the best seven-day rally since March 2009. According to annual results, Dow Jones index has also risen to plus levels.
In such conditions, US financial sector quotations keep rising. Citigroup has gained 4.9%, whereas its rivals Wells Fargo and J.P.Morgan Chase – 3.5% and 2.8% accordingly. Bank of America shares have gained 3.3%.
Blue chips have generally risen. The leaders of decline include Eastman Kodak (-12.057%), Alcoa Inc (-2.427%), and McDonalds (-1.097%). American Intl Group Inc is the leader of growth, with the increase of +6.264%.
Corporate news has also contributed to the rise. Before the session started PepsiCo Inc. Has issued its report for 9 months of 2010-2011 financial year. Net income has risen by 1.5% during this period, amounting to 5.028 bln. dollars. PepsiCo quarterly results were even higher than predicted: earnings per share (1.31 dollars) was higher than predicted by analytics, profit was also found higher, having amounted to 17.58 bln. dollars during the 3rd quarter, versus predicted 17.18 bln. dollars. In such situation, PepsiCo quotations have risen by 2.9%. Us car manufacturing sector has also risen. The shares of General Motors have gone up by 4% and of Ford Motor – by 1.3%. The sectors connected with mineral resources recovery have also occupied key positions due to rising prices on raw material.
On Thursday at the opening of European stock markets quotations lowered after a rally during the previous session. This happened because of the influence of weak trading statistics in China (import and export appeared lower than expected), which influenced investors, who started fixing their profit.
British index FTSE 100 has dropped by 0.60% to 5.409,14 points, German DAX has dropped by 0.31% to 5.975,90 points, and French CAC 40 has dropped by 0.27% to 3.220,97 points.
Today JPMorgan will be the first large American bank to announce the results of the 3rd quarter.
Alex Bobrov
