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Monday, 04 May 2009 12:09:29 GMT
Written by John Rivera, Analyst
Full Article
The Financial Times reported today that the Bank of America is working to raise more than $10 billion in capital as they look to meet the government’s expected requirement based on the stress tests.
What To Watch For In The US Session
• Bank Stress Test Results Fears Easing
• GM Could Follow Chrysler Into Bankruptcy
• Pending Home Sales On Tap
Futures Point Toward Higher Open as Bank Stress Test Concerns Ease
The Financial Times reported today that the Bank of America is working to raise more than $10 billion in capital as they look to meet the government’s expected requirement based on the stress tests. The final results will be revealed to the public but banks which have already been informed have started to take measures to meet capital requirements as they have given up efforts to convince the government that the additional liquidity isn’t needed. The defiance of the banks and the expectation that they will be able to raise additional capital has taken the bite out of the results and helped prolong recent bullish sentiment. The economic calendar will present some event risk in the form of pending home sales and construction spending. The level of demand for homes is expected to remain flat after February’s surprising 2.1% gain. Another upside surprise would help boost confidence that the sector is reaching a bottom and spur optimism for future growth. The expectations that GM could follow Chrysler into bankruptcy may also have a weighing impact on market today.
Dow Jones 8212.41
The DJIA futures are pointing toward a positive open but have steadily given back gains as we come closer to the opening bell. Weak fundamental data from the Euro-zone including declining German retail sales has offset an improved manufacturing reading from China which had sparked optimism for the global economy.
NASDAQ 1719.20
The Nasdaq could see continued support today but the looming bank stress tests and employment report to end the week could start to see traders hedge their bets and weigh in the tech laden index as we go forward.
S&P 500 877.52
The S&P 500 futures are pointing toward a higher open but a weak housing report combined with the 1.7% decline in construction spending that is expected could reverse sentiment.
CFDTrading provides news on the economic reports and political events that influence the CFD traders.
Written by John Rivera, Analyst
Full Article
The Financial Times reported today that the Bank of America is working to raise more than $10 billion in capital as they look to meet the government’s expected requirement based on the stress tests.
What To Watch For In The US Session
• Bank Stress Test Results Fears Easing
• GM Could Follow Chrysler Into Bankruptcy
• Pending Home Sales On Tap
Futures Point Toward Higher Open as Bank Stress Test Concerns Ease
The Financial Times reported today that the Bank of America is working to raise more than $10 billion in capital as they look to meet the government’s expected requirement based on the stress tests. The final results will be revealed to the public but banks which have already been informed have started to take measures to meet capital requirements as they have given up efforts to convince the government that the additional liquidity isn’t needed. The defiance of the banks and the expectation that they will be able to raise additional capital has taken the bite out of the results and helped prolong recent bullish sentiment. The economic calendar will present some event risk in the form of pending home sales and construction spending. The level of demand for homes is expected to remain flat after February’s surprising 2.1% gain. Another upside surprise would help boost confidence that the sector is reaching a bottom and spur optimism for future growth. The expectations that GM could follow Chrysler into bankruptcy may also have a weighing impact on market today.
Dow Jones 8212.41
The DJIA futures are pointing toward a positive open but have steadily given back gains as we come closer to the opening bell. Weak fundamental data from the Euro-zone including declining German retail sales has offset an improved manufacturing reading from China which had sparked optimism for the global economy.
NASDAQ 1719.20
The Nasdaq could see continued support today but the looming bank stress tests and employment report to end the week could start to see traders hedge their bets and weigh in the tech laden index as we go forward.
S&P 500 877.52
The S&P 500 futures are pointing toward a higher open but a weak housing report combined with the 1.7% decline in construction spending that is expected could reverse sentiment.
CFDTrading provides news on the economic reports and political events that influence the CFD traders.
