Banks hurt Wall Street  (14-04-2008)

After the plunge on Wall Street on Friday, due to GE’s earnings miss, concern regarding the economy was reignited and this is casting a global pall.  With major banks releasing first quarter earnings starting on Wednesday, investors will be watching carefully for any signs regarding the direction of the credit crisis that has been gripping the banking sector since summer and has since spread not only worldwide, but also cross sector. 

Asia Pacific markets were also down today, with Japanese banks leading losses although Mizuho shone by gaining 1.72%, while Shanghai and Seoul were hurt by steelmakers. 

The dollar could not hold on to the gains it made following the G7 comments and oil inched up again to pass over $110, while gold prices continue to fall. As the yuan rises in China, Hong Kong may be rethinking the peg of its own currency to the U.S. Dollar. 

European bourses continue to fall for a fifth day as Philips announced a 75% loss in profits for the first quarter and with the banking sector hit once again as investors fear more writedowns. A ray of sunshine was brought by retailer Carrefour and dairy giant Danone, which were among the gainers. 

Back in the U.S., market futures are pointing down on the tail of Wachovia’s 20 cents a share loss, down from earnings of $1.20 a share a year earlier. This comes ahead of other banks earnings releases scheduled for this week, which are expected to show more losses and make investors jittery.

Source ISFM