Citi results change market sentiment

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What a difference a day in the market might make. The trading week started on a pessimistic note and worry over expected quarterly results from the US banking heavy weights. When Citi group, which was first out, delivered strong results during the early New York session, the sentiment changed. J P Morgan and Bank of America which are next in line jumped 3,5 % on expectations that they will follow suit. Both Dow Jones (plus 0,72 percent) and Nasdaq (0,66) climbed and so did the MSCI index for the South East Asian Pacific (up 0,5 %) followed by Nikkei (0,9 % gain) in Japan and the Shanghai composite.
The Euro which has been under a lot of pressure during the last days, seemed for a moment to have forgotten debt problems in Greece and Spain. The Euro added 70 basis points towards the USD and trades at 1.2962 USD/JPY is falling to 78,89 indicating that a stronger risk appetite is back among investors. Greece’s benchmark 10 year bond yield fell to 17,51 percent, which is the lowest level seen since August 2011. This as investors scaled back bets on Greece leaving the Euro.
Also commodities rose after lackluster trading yesterday. Copper is up followed by precious metals. Gold is at 1737 after hitting its lowest level in over one month at 1728 on Monday. Silver is trading at 32,85.
Brent futures is holding steady above USD 115 a barrel on supply concerns after the European Union slapped more sanctions on Iran. Ample supplies and healthy inventory in the United States capped further gains. NYMEX, New York crude, was stabile at USD 91 level. EU imposed further sanctions on Iran’s banking, shipping and industrial sectors in an effort to force Tehran to halt its disputed nuclear program. The measures came days after Iran said it would negotiate on halting higher-grade uranium enrichment if they were given fuel for a research reactor. Iran maintains that its nuclear project has only peaceful energy purposes.
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