Promises of support and earnings improve climate (ISFM) (11-01-2011)

Sentiment improved again today, and world stocks turned positive as hope grew that the coming solid earnings season would be solid, while the euro steadied above yesterday’s four-month lows after Japan said it was considering buying about 20 percent of the bonds to be jointly issued later this month to raise funds to support Ireland; however, investors remained cautious ahead of the bond auction in Portugal tomorrow.

Earlier, most major Asian markets gained, as higher crude-oil prices helped support energy producers in Hong Kong, while Chinese stocks rose on bargain hunting among property stocks.

In Japan, stocks ended on a mixed note amid lingering concerns about the euro zone’s sovereign-debt worries, while Australian shares were held back by massive flooding in the state of Queensland. 

In Europe, stocks rose, recovering from the previous session's losses, in anticipation of the results be announced from U.S. aluminum major Alcoa after the Wall Street closing bell on Monday, which marked the start of the U.S. earnings season. Markets got support after Japanese Finance Minister Yoshihiko Noda said the country may buy more than 20% of the amount of EFSF bonds that will be initially issued later this month. Banking stocks were among the top gainers, while the upbeat outlook from Siemens also helped European stocks.

On Wall Street, US stock index futures advanced as fourth-quarter earnings season began with a profit from Alcoa that exceeded Wall Street targets and as concerns over European debt eased.

Source: ISFM