Corporate Results and Oil Prices Weigh (21-04-2008)

While Wall Street ended on a particularly high note on Friday and Asia Pacific region followed suite on exporters and renewed interest in banks, Europe turned downward in the afternoon as Royal Bank of Scotland declined on a large rights issue that has been in the works since last week. 

Losses in Europe extended in early afternoon, after Bank of America released its results for the first quarter, which, although they remain within positive territory, they fall short of analysts’ expectations and are down by 77%. 

Any benefit from the energy sector on rising oil prices has been eroded by falling banks’ stocks, which were leading losses.  

In the U.S., futures were pointing downwards, the upbeat climate of Friday forgotten as investors were digesting the news from Bank of America, and expecting more corporate results, including those from Microsoft target Yahoo! Inc., which are due tomorrow and the national activity index from the Chicago Fed.

Source ISFM