Stocks in Europe and Asia edged up on speculation that the worst of the credit crunch may be behind us. Shares were led by Credit Suisse (CS) and Lloyd’s (LYG), after a report from JP Morgan suggested that losses from subprime writedowns may have peaked. The MSCI World Index climbed 0.4% to 1521.2 in London, with banks leading the charge. Bloomberg:
“People are beginning to sense that we are coming towards the endgame,” Stephen Pope, chief global strategist at Cantor Fitzgerald in London, said in a Bloomberg Television interview. If you agree that we are through the worst, “then banks are not such a bad place to go into,” he said.
As of April 25, 60.5 per cent of companies in the S&P 500 reported positive surprises, according to data compiled by Bloomberg. In Europe, analysts now predict earnings will be little changed this year for companies in the Stoxx 600, based on data compiled by Bloomberg on April 25. That compares with a 0.5 decline forecast the previous week.
S&P 500 futures also rose, with shares gaining 0.5% in early morning trading as investors prepare for another week of earnings.
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