Global Stocks Rise Ahead of Earnings Reports

By Epoch Times Staff
Epoch Times Staff
Epoch Times Staff
October 19, 2010 Updated: October 19, 2010

[xtypo_dropcap]W[/xtypo_dropcap]orld Stock markets saw improvements following positive earnings reports from Citigroup, with similar reports expected from banking giants Goldman Sachs, Bank of America, and Bank of New York Mellon, AP reports.

Germany’s DAX was up 12.77 points, while the French CAC-40 index rose 3.46 points. Britain’s FTSE 100 index remained flat. Commodities were slightly down.

Japan's Nikkei index rose .4 percent while Australia’s S&P/ASX and Hong Kong’s Send index both rose one percent.

According to RTT News, analysts expect earnings reports to determine U.S. market activity, as several major companies, including Yahoo, Coca-Cola, Lockheed-Martin and New York Times, will report third-quarter earnings.

The latest Department of Commerce report on housing starts is due to be released just before the start of trading on Wall Street. This could also factor into investor confidence.

Traders are also awaiting clarification of Federal Reserve chairman Ben Bernanke’s remarks on Friday that the Fed might inject more money into the economy to further ease recession woes. According to the Orlando Sentinel, Bernanke said on October 15 that the U.S. central bank might buy government bonds in an effort to drive down long-term interest rates and stimulate economic growth.

While the official announcement likely won’t come until after the Fed’s November 2–3 meeting, several Federal Reserve officials, including Chicago Fed President Charles Evans, Atlanta's Dennis Lockhart and Dallas' Richard Fisher, are scheduled to speak today to explain the chairman’s comments, AP reports.