Spreadex Market Update

Concerns still linger



An unexpected profit from Alcoa kicked off the first quarter earnings season and put a halt to the decline in equities over the last few days. Concerns now loom regarding the health of the top US banks as analysts forecast a drop of 11% across the biggest 6 lenders so all eyes will be on JP Morgan and Wells Fargo as they begin the financials earnings this Friday. Poor results from the US financials coupled with much weaker than expected Non-Farms last week might be the turning of the tide for the strong gains this year.

There is still a lot to worry about given the slowdown in China, rising borrowing costs for Spain and other distressed euro sovereigns, impending Greek elections and rising import prices for the US driven by oil supply fears, meaning any drop in the pace of progress in America could cause a trend of declines in equities.

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