Thursday, April 17, 2008

Merrill Earning's disappoint

Merrill Lynch reported it's earning's and they came in below expectations. They lost $2.20 per share against estimates of $2.06 per share. This is definitely disappointing but will it have an impact? I am not so sure. The last few days has seen Financial institution earning's coming in below expectations. This has not stopped commodity prices and stocks from rallying. It also seems that the Fed Governors are preparing the market for no cut in rates at the April 30 meeting. Things are getting better (although only slightly). Lending is beginning to loosen up. Credit spreads are tightening. Libor fixing's are more in line with cash. This to me is all a sign of the credit crisis working its way through the market. We are not done yet, not even close, but with commidity prices running up it would seem a good time to sit back and take a look and allow time for the rate cuts to take effect.

Good Luck and Good Forex Trading



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