20 Apr 2012: Bulls bolstered by corporates, IMF may complete $400bn target

  • Bulls bolstered by Corporate earnings, Commodities gain too: Stocks are advancing in the last trading session of the week. Solid corporate figures, specially from GE and McDonald’s have uplifted the mood.
  • Stocks: FTSE All World is up 0.1%, and FTSE Eurofirst is up 0.4%; However, in Asia, FTSE Asia Pacific has lost 0.5%, while Tokyo lost 0.3%; S&P 500 is expected to gain 0.5% at opening bell; FTSE 100 has added 0.2% today and is at 5758
  • Currencies: Euro has gained 0.4% against Dollar and is at $1.3186; Dollar index has in general lost 0.4%, signalling a healthy growth in risk appetite in the markets
  • Debt: US 10-years at 1.99% and Bunds at 1.72% have both gained 2bp; Gilts have gained 4bps at 2.19%
  • Commodities: Brent Crude lost 1.1% cents to $119.26/barrel; Copper gains 1.4% and is at $3.68/pound; Gold is at $1644/ounce
  • IMF expects $400bn: IMF expects its members to stump up another $400bn in order for it to be better equipped to deal with any future financial crisis. This funding is being sought to boost its lending capacity. The fund is confident of reaching this aim as $320bn were already raised by Wednesday, and there are still some growing economies yet to contribute. IMF sets aside 20% of its funds as liquidity and will have close to $700bn to deploy after this fund raising.
  • Optiver pays $14mn to settle oil futures manipulation claims: Optiver has been forced to pay $14mn to US regulators after claims that it manipulated the oil futures market in 2007.



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