Easter Financial Trading Update

Posted on | April 9, 2009 |

Financials are on fire today and lifting global markets with them as positive headlines hit investors in waves today. It started as a reasonable day anyway for European markets, but the opening surge from the US has pushed markets even further into positive territory.

In the UK, Barclays finally closed out the sale of iShares with the £3bn fee coming in around average estimates. Some had thought it could go for much more, but there seems to be a general relief that the deal has gone through full stop.

Wells Fargo added fuel to the fire by coming in with results that topped analysts’ estimates. Wells is up nearly a quarter on the day, with most of the UK and US financials up by around 10%.

Another catalyst for the buying frenzy has been the New York Times reporting that all the 19 examined US banks have passed the treasury stress test. The exact results are going to be delayed until after earnings season, but the general relief that there will be no major surprises has flushed traders with confidence.

US jobless were dismal, but slightly less dismal than before. The drop in total claims was less than expected, though the continuing jobless claims continues to rise. If there has been a consistent barometer of economic sentiment this year, it is oil and true form, crude prices have risen back above the $50 market after dipping below that level yesterday.

The bank of England rate statement was a bit of a non event as they kept rates on hold as largely expected. Currency markets are quiet today with more forex pairs range bound ahead of the long weekend.

By David Evans of BetOnMarkets.

The above comments do not constitute investment advice and neither BetOnMarkets nor Spread-Betting.org accept any responsibility for any use that may be made of them.

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