Global stocks received a boost yesterday from a number of sources. Firstly, a positive article in the NY Times stated that all 19-US banks subjected to FDIC’s stress tests to determine their viability will pass the review, even if some lenders require additional capital. Perhaps US banks may be healthier than originally anticipated or is this just ‘window dressing’ to fuel consumer confidence? Secondly, good ‘old’ Wells Fargo earning $3b in the 1st Q topping the streets estimates added further momentum. Thin markets and an early close were capable of pushing the EUR to extremes yesterday just before traders left for the long weekend, a nice Easter present, squeezing all those longs out!
The US$ is stronger in the O/N trading session. Currently it is higher against 13 of the 16 most actively traded currencies, in a ‘subdued’ trading range.
Some surprise in yesterdays ‘slew of data’ this side of the pond. US trade will contribute positively to the 1st Q (-26b vs. -36.6b)....
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