Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: teevee who wrote (100752)	8/12/2009 7:53:44 PM
From: Rocket Red	1 Recommendation Read Replies (1) \| Respond to of 116555

Stock Bulls Increase as Survey Shows Most Optimism in Two Years Share \| Email \| Print \| A A A By Whitney Kisling and Alexis Xydias Aug. 12 (Bloomberg) -- Investor sentiment improved around the globe this month, turning bears into bulls in five of the world’s biggest stock markets as earnings and economic data topped estimates. Optimism on U.S. equities climbed the most since April, according to the Bloomberg Professional Confidence Survey. Investors expect equities to rise during the next six months in a record seven countries, with indexes in Brazil, Italy, the U.K., France, Mexico, Japan and Switzerland forecast to advance. Stocks surged for four straight weeks as companies worldwide beat second-quarter earnings estimates by 13 percent and the U.S. economy shrank less than forecast in the second quarter. The MSCI World Index of 23 developed nations has gained 52 percent since sinking to the lowest level in more than a decade on March 9, the biggest rally since it was introduced in 1970, according to data compiled by Bloomberg. “The more stocks go up, the more optimism there will be,” said Alberto Espelosin, who helps manage about $10 billion at Zaragoza, Spain-based Ibercaja Gestion and was among 1,375 participants in the survey. “The U.S. will clearly come out of a recession at the end of this quarter, but stock prices may already be discounting this.” Investor sentiment was within 1 point of reaching 50 in the U.S. and Germany, the level that shows participants expect prices to rise in the next six months. Confidence in the Standard & Poor’s 500 Index, the benchmark gauge for American equities, increased to a three-month high of 49.7, twice the record low of 23.5 in January 2008. For Germany’s DAX Index, the reading of 49.5 is the highest since December 2007, the second month the survey was conducted. Spain’s reading of 40 was the lowest among those in the survey. Quarterly Gain The S&P 500 has jumped 8.2 percent since May as the Conference Board’s index of leading economic indicators rose for three straight months. The Labor Department said last week that the U.S. unemployment rate fell for the first time in 15 months. Equities increased after companies from Santa Clara, California-based Intel Corp. and JPMorgan Chase & Co. in New York to BP Plc in London reported profit that beat analysts’ estimates. On average, companies in the MSCI World beat projections by 13 percent during the second quarter, according to data compiled by Bloomberg. ‘Very, Very Good’ “There’s absolutely no question that the earnings news has been very, very good,” said Joseph Veranth, chief investment officer at Dana Investment Advisors in Brookfield, Wisconsin, which manages $2.3 billion. “That’s really been a positive for the market.” The U.K. had the biggest advance among the 10 nations in the survey, rising 43 percent to 60.6 since July. The FTSE 100 Index posted an 11-day winning streak last month, jumping 11 percent through July 27. The nation’s housing market improved in July, while retail sales increased. Europe’s Dow Jones Stoxx 600 Index has surged 44 percent since March 9. Optimism for equities in France, the second- largest economy in the region, climbed 21 percent to 57.8. Industrial production increased for a second straight month in June, helped by auto sales, and business confidence reached an 11-month high in July. The Italian economy benefited from European auto demand that boosted sales at Turin-based Fiat SpA, while Switzerland’s leading economic indicators rose in June. Both nations’ readings rose to all-time highs, with Italy’s level up 28 percent to 62.9 and Switzerland’s increasing 36 percent to 53.6. Smallest Increase Confidence in Germany’s DAX rose the least, advancing 5.3 percent to 49.5. The stock index has surged 45 percent since March 6, pushing it to the most expensive level relative to earnings in more than five years. The sentiment measure for Brazil rose 12 percent to 68.1, the highest of the 10 countries. The nation’s Bovespa Index has jumped 49 percent in 2009 on speculation a rebound in commodity prices and record-low interest rates will fuel growth in Latin America’s largest economy. Confidence in Mexico climbed 6.7 percent to 53.9. In Japan, the Nikkei 225 Stock Average has advanced 48 percent in the past five months. The confidence gauge for equities in the world’s second-biggest economy rose 13 percent to 53.7 percent. To contact the reporters on this story: Whitney Kisling in New York at wkisling@bloomberg.net; Alexis Xydias in London at axydias@bloomberg.net. Last Updated: August 12, 2009 07:00 EDT