This news came to insure earlier announcements from Citigroup and Bank of America where they also lived two positive months, which might stop the bleeding losses.
The Chief Executive did not stop at positive performance but he also added that cutting jobs would not take place any more, as they will continue growing this year, also he mentioned that they are considering some acquisitions of tumbling banks in Asia and others.
After this announcement, Asian indices managed to incline, with Nikkei Index adding 3.18% for the third day or 244.98 points closing at 7949.13 levels, the Japanese indices were bolstered by the spreading optimism from the governmentâ€™s intentions to start buying subordinate bonds. Hang Seng index also gained 1.43% reaching to 13162.81 levels.
Looks like the tumbling financial sector is starting to sense some recovery as confidence is being restored step by step, the endless deterioration in financial markets that resulted in snatching away all the confidence, but the problem is that any unfavorable news released in financial markets would result to a vast decline in prices and indices, so cautiousness must take place.
Bank of Japan and the Federal Reserve are meeting each team alone in order to negotiate with their members what other measures must be taken in order to bolster financial markets. Both banks will not consider reducing their rates down as the Japanâ€™s rate decision stands at 0.10% and the Federal Reserve had reached their historical lows taking their benchmark most recently to 0.0-0.25% range.
According to the future tradersâ€™ odds, 92.0% will be holding their benchmark rates at 0.25%, leaving only 8.0% with reducing rates down to 0.0% especially after the deflation demon is augmenting. Markets are still waiting to see when the feds will start buying the long-term debts especially after they mentioned on various occasions that their next step is to buy debts.
From the Euro area, markets are waiting for the German and Euro Zone ZEW Survey, according to market predictions the economic sentiment had retreated in March to -8.0 levels from the previous -5.8, along with the Current situation that would retreat to -90.0 levels from the previous -86.2 levels.
The tumbling outlook in the zone, with the vast fall in consumer prices and the surging unemployment rats will slip the leftover confidence, where until now a bottom is not reached yet and analysts foresee deeper contractions this year as demand continue to weaken.
While from the North American continent, weâ€™ve got the US producer Prices, according to market projections prices would be rising 0.4% on the month easing slightly from the previous 0.8%, the yearly prices had fallen 1.4% in February from the previous -1.0%. The Core Producer Prices rose 0.1% according to projections slightly worse than the previous 0.4%, with the yearly core prices eased slightly to 3.8% from 4.2%.
Our calendar also contains some housing fundamentals, according to market anticipations the US housing starts had eased in February to 450 thousand from the previous 466 thousand, along with the building permits easing down to 500 thousand in February from the revised previous 531 thousand.
The housing sector is struggling and any improvements will not be seen until Confidence is restored in the United States and banks stop their hesitations by lending money to individuals.