Daily Forex Fundamentals | Written by ecPulse.com | Apr 22 09 12:25 GMT |
Between optimism, pessimism and the augmented concerns did not stop with the stimulus packages released out by governments, where traders are standing still waiting for chances to gain profits especially after they lived through much losses in the prior year. However, earnings was the major player in today's session were we start with Volkswagen, Praktiker and end with Peugeot.
Moreover, the International Monetary Fund announced yesterday fresh projections about the result of the worst credit crisis since the great depression, according to estimates the levels of write-downs will reach 4.15 trillion dollars rising from the previous estimate of 2.2 trillion. In addition, the IMF said the world growth will be heading into a contraction for the first time since the World War II.
Europe's biggest carmaker, Volkswagen announced first quarter earnings by saying that the level of profits dipped heavily with almost 74%, where the net income stood at 243 million euro's from the previous 929 million seen in the earlier year. Volkswagen profits were eroded heavily from the prolonged weakening demand across the globe along with the continuous resistance of banks from lending out money to borrowers.
Recently, the car industry tumbled heavily especially in the United States where two of the main car manufacturers are now crying for help just to keep going, General Motors and Chrysler on various times demanded the US government bailout, however they had failed in creating a convincible restructuring plans in order to keep going.
When signs of turbulence in the car industry came on surface, governments such as France started to work rapidly to support two car industries in their territory; the lent money came to rescue those companies just to keep going until the long lost confidence get restored once again and demand picks up some pace.
Praktiker one of the biggest home improvement retailers in Germany announced that their operating losses augmented heavily in the first three months of the year, their net losses reached to 36.8 million euro's from the previous losses seen at 23.5 million euro's. Recession hammered all sector in the economy, no chance for improvement even after the government had intervened on various occasions.
The prolonged turbulence will not stop unless the confidence in the economy get back on track, the non-spending consumers and the hesitant banks would continue to pressure growth and earnings into losses.
The European indices added Dow Jones euro stoxx added 0.50% reaching 2254.88 levels, CAC 40 added 0.44% reaching 2987.16 and the German DAX added 0.39% reaching 4519.07 levels.
Therefore, dear reader lets just wait to see the other fundamentals for this week where today our calendar lacked any...
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