Broadgate: Market News 30/4
30 April 2012
Asian stocks rose, with a regional index heading for its longest winning streak in three months. Corporate earnings beat estimates and confidence among South Korean manufacturers improved. In addition the Australia & New Zealand Banking Group Ltd. (ANZ) advanced 1.1 percent on speculation the Reserve Bank of Australia will cut interest rates tomorrow to bolster economic growth.
Analysts are predicting that U.S. shares will rise enough this year to boost the Standard & Poor’s 500 Index to a record. Bullish forecasts are based on expectations that S&P 500 earnings will reach records every year through 2014 as stimulus by the Federal Reserve props up the U.S. economy. More than 70 percent of companies have exceeded estimates with first- quarter results.
However some voice the opposing opinion that Europe’s debt crisis won’t be contained and economic growth will be insufficient to maintain gains that have restored more than $3 trillion to U.S. equities in six months.
A U.S. report today may show household purchases, which account for about 70 percent of the economy, rose 0.4 percent in March, according to the median estimate economist forecast in a Bloomberg News survey. That follows a 0.8 percent gain, the most in seven months. A separate report may show an index of business activity cooled this month.
European data today may show Spain’s economy, the fourth- biggest in the euro region, shrank during the first three months of this year.
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