The Market Expects Spanish decision. - 12.10.2012

The focus of today is on the results of corporate reports from two of five largest U.S. banks - JP Morgan Chase and Wells Fargo. It is expected that the financial sector may be one of the "light spots" on the background of pessimism about the outcome of the third quarter. Indeed, the JP Morgan data reassured the market: Net income per share was $ 1.40, an increase of 34% compared to last year and well above the forecast of analysts questioned by Bloomberg ($ 1.20). Wells Fargo results came along with forecasts. Against this background, S & P500 accelerated its growth and now gains 0.3%, while the European indices at the time moved to the "green zone. Spanish story is also playing a significant role. Spanish Minister of Economy, said that there is no political resistance that within eurozone on application of Spain for financial support. As it can be seen, there is consensus occurred in the market, which means that in case of treatment of Madrid for bailout, the euro and other risky assets will be supported. Out if important macro statistics, we can note the Michigan University Consumer Confidence Index, released at 15:55 CET.

EUR/USD, hourly chart