Sometimes markets don’t act like they “should” do. Today US GDP came in at -6.1% for Q1, significantly worse than consensus expectations, yet markets have rallied today. Even the revelation that 6 out of the 19 banks being examined as part of the US stress test will need further funds, hasn’t dented enthusiasm today.

It certainly is a good day for banks across the world with Barclays in the UK hitting its highest levels since October of last year. Santander’s results have certainly helped sentiment in the sector across Europe.

We still have the FOMC meeting to come which could reverse today’s initial optimism, but the way markets are rallying today in the face of seemingly bad news, it could take something significant to reverse today’s gains.

Oil’s resurgence is certainly helping this with Shell following BP with better than expected results. Oil is trading higher at $51.12 today.

By David Evans of at betonmarkets.co.uk

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.