Stock-Markets
Best Financial Markets Analysis ArticleStress tests? What stress tests? - The Federal Reserve is postponing the release of stress tests on the biggest U.S. banks while executives debate preliminary findings with examiners, according to government and industry officials.The results, originally scheduled for publication on May 4, now may not be revealed until toward the end of next week, said the people, who declined to be identified. A new release date may be announced as soon as today, they said. Regulators and bank executives are concerned about how the disclosure is handled because weaker institutions could suffer a collapse in their stock prices.
Was it Obama? Or was it the stock market rally?
Consumer confidence increased in April due to the widespread perception that PresidentObama’s economic policies will be effective in improving economic conditions. “Two-thirds of all consumers anticipated that the economic policies of the Obama administration will be effective in improving national economic conditions, with most of the gains anticipated over the next several years,” according to Richard Curtin, the Director of the Reuters/University of Michigan Surveys of Consumers. Favorable views about the effectiveness of Obama’s policies to improve the financial situation of consumers were not as widespread, as four-in-ten consumers thought the policies would be effective in improving their own financial situation. “Consumers continued to report that their finances remained dismal and their buying plans were still on hold due to concerns about their future job and income prospects,” Curtin said.
Is this a new bull market…or just a bear market rally?
-- U.S. stocks began May on a less-than-sunny note, with major indexes sliding as investors paused to assess the previous month's surge and the U.S. economy's chances of recovering as hoped.A 33% recovery in two months will have to be digested by the market before much more gains are realized. That means a retest of the lows may come soon. The first line of demarcation will be the 50-day moving average, shown on the chart.
Treasury bonds are taking a pounding.
Treasury 10-year notes fell for a fourth day and are headed for a sixth straight weekly loss as credit markets thaw and speculation grows that the worst of the global recession may be over. The decline, which would be the longest weekly losing streak in almost two years, comes as an industry report showed manufacturing in the U.S. shrank in April at the slowest pace in seven months. The Treasury plans to sell $71 billion of notes and bonds next week, to finance a widening budget deficit, bank bailouts and fiscal recovery packages.
Japanese stocks advance but future is uncertain.
-- Japanese stocks jumped, sending the Nikkei 225 Stock Average to a near four-month high, as forecasts from Fujitsu Ltd. and Canon Inc. lifted optimism corporate earnings will recover in 2009. Electronics firms were able to cut prices and reduce unsold inventory, giving them a leg up on other manufacturing concerns. The big problem seems to be that deflation makes the cost of servicing loans higher while cutting net revenues. The future outlook is mixed. Only 40% of companies polled expect profits to rise.
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