Final earnings test before year end
Oct 3, 2009 Make Money Online
By Natsuko Waki
LONDON (Reuters) – With three months to the end of 2009, third-quarter corporate earnings — due in the next couple of weeks — will hold the key to whether risky assets can sustain their rapid recovery since March.
On Wednesday, Alcoa, the largest U.S. aluminum maker, will kick off the Q3 reporting season which is expected to show an earnings contraction rate of almost 25 percent for the S&P 500 index.
World stocks, measured by MSCI, have risen more than 62 percent since their March trough, and just posted the third biggest ever quarterly gains in the three months to end-September.
However, they are on track to post a second consecutive week of losses as investors grow nervous that the improvement in the macro economy might be easing. A closely-watched U.S. jobs report showed a sharper than expected fall in September, fanning concerns that the weak labor market could undermine recovery. Read the rest of this entry »
Tags: Credit Suisse's private bank, Earning, MSCI, Stock Market, World Stock
