Saturday, 9 April 2016

Markets rebound, US corporations expected to beat earnings estimates

Stocks rebounded on Friday together with oil.

The S&P 500 rose 0.3 percent while the STOXX Europe 600 jumped 1.2 percent.

Emerging markets were also mostly higher, with the MSCI Emerging Markets Index rising 1 percent despite a 0.8 percent fall in the Shanghai Composite Index.

West Texas Intermediate crude jumped 6.6 percent, the biggest gain since 12 February.

The gain on Friday did not stop the S&P 500 from finishing the week down 1.2 percent.

US stocks could have some relief in coming weeks though. Analysts at Bank of America Merrill Lynch expect corporations to beat lowered estimates by solid margins this earnings season.

Upside for stocks could be limited though as the analysts also think that overall economic and revenue growth will remain sluggish.

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