Current Futures: Dow +20.00, S&P +1.60, NASDAQ +1.75
European markets are heading higher, extending the gains seen in the previous day, on Monday. During the overnight session, the Asian markets and the S&P futures managed to trade into the green.
European banks rose, as investors priced in better than expected earnings to come from Goldman Sachs. The market was put in optimistic mode after Goldman Sachs was upgraded to “buy” as analysts think the company has been profiting from the huge amounts of debt sold by the government. As such, this has allowed the U.S. and the Asian markets close up by a little more than 2% over the last few trading sessions, while it helped European market advance for a second day, TheLFB-Forex.com Trade Team said.
At the same time, commodity stocks continued to have a strong influence over the European equity markets. For a second day in a row, the commodity producers led the gains in the U.K. FTSE index. Of the top five performing companies in the U.K. index, four are from the commodity sector and only one is from outside, Old Mutual, which is specialized in wealth management services.
Today is the start of what seems to be a very important week for the equity markets. Some of the biggest U.S. companies are expected to report in the following few days, which will probably have a strong weight in the global market. Later today, Goldman Sachs, Intel, Johnson & Johnson and Yum are expected to report the second quarter earnings. TheLFB-Forex.com Trade Team estimates that some companies saw their earnings drop by a third or even more throughout the second quarter.
Overnight, the U.K. FTSE advanced 26.28 points (0.63%) to 4,228.41, while t he German Dax gained 41.66 points (0.88%) to 4,764.00
Crude oil for August delivery was recently trading at $60.50 per barrel, up by $0.80. Oil headed higher during the overnight session, but only managing small gains.
Gold for August delivery was recently trading higher by $1.70 to $920.80. For now, gold is testing the 100-day moving average.
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