Stock exchange news. American exchange members started the week with sales, but changed their mind as soon as quarterly reports of American banks were published. Technically, S&P500 still remains within a horizontal channel with the top margin of 1350-1370 and nearest support level of 1300.
Analytics were rather skeptical concerning the results of the reports, whereas the deepest concern was expressed concerning the number earnings. Yes, such giants as Goldman Sachs and Bank of America have disappointed investors by their numbers. BA has reported about a net loss of $8.8 billion, and although GS has shown income, is appeared much worse than had been expected.
At the same time, strong reports were provided, as explained by traders of the Department of Portfolio Investments of Masterforex-V Academy. For example, Wells Fargo & Co has shown income of $3.95 billion, which currently is the company’s record.
According to the results of the working week, financial sector became the leader.
Technological sector is not far behind it. Such giants of IT-industry as Apple, Microsoft, and IBM, which have shown excellent quarterly results, set the tune here.
Despite good financial reports, ambiguity and uncertainty are brought to the market by debt problems of sovereign countries, threat of default, lowering the rating of the USA, as well as the burning issue of Greece.
During the summit of EU leaders new means of supporting Greece were set. They mean assigning to Athens 159 billion Euro, 109 billion of which are to be provided within the next three years under 3.5%. Markets are currently expecting the reaction of rating agencies, which are threatening to lower the rating of the country to the level of “selective default”, which, according to the head of CB of Austria E. Novotny, “will have no drastic negative consequences”.
The calendar of economic events for the current week:
