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Markets Rise on US Banking Stress Test Results

European stock markets have forged ahead in early trade, led by financials and miners.

Financial spread betting markets are reacting to positive news from America last night, as US banks displayed their resilience in the latest stress tests.

Of all the institutions tested, only one failed to reach the tier one capital ratio requirement.

Stock Market Trading

News that China’s exports had exceeded expectations and risen 21.8% in February from a year earlier has also helped to boost the risk-on attitude.

This sentiment remains strong despite contentions that Chinese exporters have overstated figures in an effort to avoid capital restrictions.

HSBC is currently holding the top spot on the UK bluechip index, adding 2.32% in early trade.

Meanwhile Schroders, which has benefited from a broker upgrade, has seen a gain of 2.18%.

Later this afternoon, we’re due to see the key data point in every month, the US Non-Farm Payrolls.

The employment report will be eagerly watched, with expectations that 165,000 jobs will be added.

In light of the bullish exuberance seen in global markets this week, a failure to meet these hopes might stimulate a mild sell off.

Nevertheless, the backstop of the ‘Bernanke Put’ will likely keep any dramatic corrections in check.

 

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Financial Market Comments from Brenda Kelly, Market Analyst, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

Content provided by IG Index which is Authorised and regulated by the Financial Services Authority. FSA Register number 114059.

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