U.S. stocks rallied on Wednesday following announcement that Goldman Sachs has earned more than expected during fourth quarter. The euro increased in value following reports that the International Monetary Fund has taken measures to enhance its capability to combat European financial crisis.
Since result of Greek debt restructuring talks is still unknown, investors will adopt a cautious approach. Bond redemptions by Greece to the tune of 14.5 billion euros is due in late March. For that reason it is important that an agreement with private sector is achieved if Greece is to receive its next tranche of international assistance and to avoid bankruptcy.
As per analysts the International Monetary Fund’s measures indicate that the Europe is stabilizing.
The yield on 10-year note increased from 1.86 percent to 1.90%.
In order to lend money to countries affected by the euro zone crisis, the International Monetary Fund is planning to enhance its finance base by $600 billion.
Against the dollar the euro increased in value on third consecutive session. Reports that Italy might not be downgraded by Fitch Ratings, helped in lifting the currency.
Share price of Goldman increased by about 7 percent. The bank exceeded analysts’ predictions by about 50% through lower taxes and cost cutting. Futures prices were mixed as investors digest goings on in the markets.
