Better-than-expected earnings from Ericsson, Samsung, and Volvo fuelled stock gains in Europe and Asia, pushing the MSCI World Index up 0.4% in London. S&P 500 futures also advanced 0.4%. Average EPS for S&P 500 companies that have reported so far are 0.5% higher than consensus, though profits are down a staggering 21% year-over-year. Bloomberg:
Ericsson, the world’s largest maker of wireless networks, soared 25 per cent in Stockholm, while Samsung, Asia’s biggest electronics maker, reached a two-year high in Seoul. Truckmaker Volvo rebounded from a one-month low as sales in eastern Europe helped it overcome a slump in the U.S. HBOS Plc and Barclays Plc gained after Goldman Sachs Group Inc. said the banks won’t have to sell shares to replenish capital.
Europe’s Dow Jones Stoxx 600 Index added 1.3 per cent, leaving it with a 0.3 per cent gain for the week. The MSCI Asia Pacific Index increased 0.9 per cent. Japan’s Nikkei 225 Stock Average had its sixth straight weekly gain as the weaker yen boosted the profit outlook for companies that rely on the U.S. for sales. Five-year government bonds fell, sending yields to the biggest jump in nine years, after inflation accelerated and investors bought equities.
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