Greek banks reopened today after being closed for the three weeks with the scope to prevent the country’s financial system from collapsing. However the limits of 420 euro a week will remain on the cash withdrawals and transfers abroad will still be barred. The Greek financial markets will for now remain closed until further notice. Continue leyendo Greek banks reopened on monday
The U.S. dollar fell but a rising is expected
The dollar fell, affected by the progress of the pound sterling and the Australian dollar. However these setbacks seem that could be mitigated. Recently there was the announcement of a possible further cut in the Federal Reserve bond purchases, so the outlook is bullish for the dollar.
The pound appreciated to a three-week high against the dollar, supported by the good performance of the economy of England.
Unemployment in Britain fell to near the target level of the Bank of England. Therefore we are in a scenario of increasing rates, which will likely push the pound sterling. Continue leyendo Market Analysis for January 2014
Continue the good news of positive U.S. data, with increased construction spending, which rose 0.8 percent to an annualized level of 908,400 million.
Analysts expected an increase of 0.4 percent, so the number was a very positive surprise.
In September spending had contracted 0.3 percent , with the effect of the shutdown. Continue leyendo Construction Spending Increases in the U.S.
This week was confirmed an important news expected by investors and the market in general: U.S. monetary policy would remain at low rates for a long time.
This was confirmed by Janet Yellen, the strongest candidate to succeed Ben Bernanke as head of the Federal Reserve. In a letter, Yellen said that even if United States achieves better unemployment or inflation figures, there is still a long way to go before raising the interest rates.
Even a low level of unemployment would not be enough to raise interest rates. All this confirms what Yellen said last week in the Senate Banking Committee. Continue leyendo Weekly Summary of Financial Markets 18/11/2013
We are well advanced in season earnings for the third quarter and we have the results of 73% of companies in the S&P 500. The data have generally been good. The 67% of companies exceeded earnings expectations of the market, which is very good.
The revenue growth was 4.3% compared to last year.
This surprise in the results is not due favorable economic movement, but rather by pessimism in the months prior to the earnings season, which lowered the forecasts of analysts.
To analyze well the profits, we must pay attention not only to the percentage that exceeded expectations. The number to look at is the revenue, because earnings can be distorted, while sales and earnings are less sensitive to accounting manipulation. Continue leyendo Market Analysis for Third Quarter 2013