ROME- “Weakness in the U.S. economic system came back around on Tuesday, as July consumer confidence levels fell below market hopes,” said Michael Porto, a European research analyst at Palatine Financial. “Although U.S. systems incited fear, strong earnings news within Euro markets will provide investors with a substantial amount of optimistic outlook for many stocks.”
Porto expects the German DAX index to be up 18 points, while London’s FTSE 100 index to drop 10 points, and the Paris CAC-40 index to jump 6 points.
“For another time, Euro stocks may carry on inching their prices up, but fears of double dip actions and the triggering of another global recession always loom on the minds of U.S. and European investors, if these two countries manage to tame interest rates at low levels, equities may be able to hold strong appeal,” said Porto.
Stocks in the natural resource departments may be in for drawbacks in profits despite earning reports being positive in the second quarter of the year. A slowing in the global recovery came this quarter, forcing companies like ArcelorMittal, the largest steelmaker worldwide, to take a seasonal hit in demand, coupled with a heavy economic slowdown in China.
Corporate earnings from U.S. giants like Boeing, ConocoPhillips, Sprint Nextel, and Comcast are schedualed to be reported before Wall Street opens and sounds its bell. DuPont helped to push the Dow Average up, but the S&P saw a drop as consumer confidence lingered on weary stocks.
For more information, please contact Jason Mancini at +39 06 9926 6524 or visit http://www.palatinefinancial.com
