Solid results boost sentiment (ISFM) (21-01-2011)

World stocks were mixed at the end of a volatile week, with Asia still under pressure from the possibility of further tightening from China, while Europe was basking in the optimism wrought by the positive reading of the Ifo survey.

Most Asian markets fell on inflation concerns in the region and investors were selling more than buying in Indonesian, Japanese and South Korean markets, were the falls were the biggest, while Chinese stocks finished higher on bargain buying, although some analysts were saying that the upward trend is only temporary and that investors were focusing on whether China can keep inflation in check.

In Europe, the positive Ifo survey in Germany as well as gains among most banking stocks helped Europe rally after yesterday’s losses, with Royal Bank of Scotland Group rising sharply on the hope that it is leading towards leaving the government bad-asset program early.

Among currencies, the dollar fell, with the euro resuming an eight-week high against it following the Ifo survey release.

On Wall Street, U.S. stocks opened higher on strong results from General Electric Co. and Google Inc., though Bank of America Corp. shares lost ground after its earnings missed expectations.

Source: ISFM