Exchange news, SP500. It was a rather busy week. For the first time in last two months S&P 500 index has gone beyond 1250. A lot of market players were longing for the results of European Union summits. Friday trading session has been rather neutral in comparison with the rest of the week.
This tranquility can be explained by the fact that there was no news significant enough to bring in liveliness into the market. Last week’s reports on profit were mostly better than expected, which had a positive soothing impact on the market.
The quantity of unemployment benefits, which has reached almost 400 000, was little discussed, as major attention was paid to the European Union plan of economic recovery.
Details are yet unknown, but the market is inspired by the intention of European Union to increase the fund of Eurozone financial help to 1.4 trn. Euro, to hold bank recapitalization, and to cut Greek debt twice.
On Thursday stock market had the best in last two months trading session, whereas financial sector has eventually risen by 11.5% due to less concern of banks concerning their presence in Europe.
Many investors are certain that a detailed plan of helping the Eurozone is yet to be expected for several weeks, for this issue was not even raised during the Wednesday meeting of European Union members. Nevertheless, the desire of European leaders to solve financial issues together encouraged market purchases.
According to Department of Portfolio Investments, at this point good points of entry are rather hard to find, for the market has raised a lot, and it is better to wait for a pullback.
However, it is not worth quitting the already taken positions, for one simply has to watch the situation carefully. The stocks suggested during the previous week remain good trading tools.
