More insights from equities and earnings reports

Markets are in the process of bottoming out with sentiment changing as the global crisis faces more challenges and investors are ready to take more risks.

Stocks in the US and Asia rose on financials with better than expected earnings from Wells Fargo and Goldman Sachs and speculation that other US banks will also post robust quarterly results (JP Morgan Chase on Thursday, Citigroup on Friday and Bank of America and Morgan Stanley next week). In Europe, UBS announced $ 1.7 billion loss, cutting 7.5k jobs.

Fed Beige book gave signs of stabilization with deceleration in the pace of economic decline in 5 of 12 districts and reaffirmed general weak economic conditions (weaker manufacturing, industrial production lowest since 98, sluggish retail spending, weak labor market conditions and residential real estate, downward pressure on inflation) while builder optimism jumped. US retail sales on Tuesday showed unexpected fall.

USD gained as uncertainties persist ahead of the earnings reports.

EUR fell after ECB official said ECB to announce “Non standard measures” to boost the Euro zone economy. ECB expected to cut rate from 1.25% to 1% at its May 7th meeting.

GBP still enjoying a strong rally in the absence of bad news with UK housing data boosting it above key 1.50 level.

Rangebound Gold pressured by lower US consumer inflation and firmer USD.

Crude Oil range trading around 50USD since the start of April despite crude stocks rising to highest since Sept 90. Focus on USD, inflation and stocks.