Finance World-‘Sun Worldwide’ – (Financials’ Rally Cannot Last)…

April 5, 2009 - PRLog -- Sources close to ‘Sun Worldwide’ suggest that the firm believes that the recent 2 week rally in global financial stocks is a “dead cat bounce” and it expects the surge to run out of steam in the days ahead.

Bullish news from Vikram Pandit, CEO at Citigroup preceded the current rally after he said that the beleaguered bank had traded profitably for the first two months of 2009.

‘Sun Worldwide’ analyst were reportedly unconvinced and suggested that the forthcoming round of toxic asset write-downs would see any profits negated when the banks publish their 1st quarter results in the weeks ahead.

The consensus among ‘Sun Worldwide’ analysts appears to be that there is little in the way of positive fundamentals and, as a consequence, the rally would fail and markets would retest the lows set in recent weeks.

One of the ‘Sun Worldwide’ sources said that the with the US, UK and European economies still in the throes of a deep recession, it would be advisable to wait until after the next leg down in the markets before acquiring stocks in financials.