Success Of The Banking Sector Promotes Growth Of Indices

European stock markets had a rather positive trading session yesterday, the German DAX increased by 2.0%, having reached a new historical record point. The economy of Germany looks forward with optimism, and, according to forecasts of the German Central Bank, gross domestic product of Germany will grow this year by 1.7% and by 2% in 2015.

Among the favorites of growth yesterday in the European stock market, were shares of banks such as Deutsche Bank AG NA O.N., (DB), adding 3.1% in value, and Commerzbank AG O.N., (CBKG), increasing by 3.0%, added on expectations of the announcement by the European Central Bank of parameters of the stress tests, which carried out, will hopefully increase trust in the European banking system.

The increase of forecasts on growth rates of the world economy by the World bank, and also the rise in price of shares of stocks in the banking sector, alongside the inspiring report of Bank of America, gave support to the American market.

From yesterday's published macroeconomic statistical data, it is possible to note the increase in the Producer Price Index in December by 0.4%, as it was predicted by the market. At the same time, oil stocks for the past week were reduced, according to EIA, on 7.658 million barrels, whereas analysts expected a decrease in stocks by only 0.613 million barrels.

As a result, the indicator of "blue chips", the Dow Jones Industrial Average index, got stronger by 0.66% and was closed on a level of 16481.94 points, the index of the wide market S&P 500 went to a plus by 0.51% to level of 1848.38 points, and the index of hi-tech companies, Nasdaq, recovered by 0.76% to the level of 4214.88 points.

The banking sector was in special demand. Shares of the second biggest creditor in the USA, Bank of America Corporation, (BAC), rose in price by 2.3% after it reported more than a quadruple increase in the quarterly profit, which absolutely surpassed forecasts of analysts. Quotations of Wells Fargo & Company, (WFC) and J P Morgan Chase & Co, (JPM) grew, in turn, by 1.8% and 3% respectively. Among the favorites of the trading session was also the American corporation, Apple Inc, (AAPL), which market capitalization increased by 2% due to a statement given by China Mobile, which confirmed that advanced orders of the iPhone reached 1 million units.

The is one more important test ahead– the publication of the report of CPI reflecting inflationary tendencies in consumer level. This index needs to confirm a rise in prices in order to convince representatives of the FED of the possibility of further cutting the monetary easing program. If the numbers show amplifying inflationary pressure, it will mean that the American consumer will be able to overcome any short-term uncertainty, and will continue to spend their savings.