Stocks Fall, Euro Weakens as Finance Ministers Meet – Bloomberg 10-08-12

Salient to Investors:

Bruce McCain at KeyCorp said we’re back to a period where investors become less enthusiastic as they realize the problems of the world have not gone away.

Bloomberg poll estimates S&P 500 earnings will fall 1.7 percent in Q3, the first decline since 2009.

Gina Martin Adams at Wells Fargo said earnings are weakening fairly quickly – export and investment sensitive sectors are suffering from economic and policy uncertainty, pressuring index earnings to the brink.

Bloomberg said analysts raised estimates for bank profit increases of 21 percent for Q3 and 32 percent for Q4, the most of 10 S&P 500 industries, on signs of a housing recovery. Bank remain 58 percent below the February 2007 record high. Economists expect GDP to grow 2.05 percent in 2013 versus 2.2 percent in 2012.

Stephen King at HSBC said China acted as an major counterweight in 2009 to the western difficulties with a huge infrastructure boost, but we are not seeing a repeat this time. King said everyone exposed to southern Europe is not benefiting from a China boom which is hurting world trade.

Read the full article at http://www.bloomberg.com/news/2012-10-08/euro-weakens-with-asian-stocks-as-aussie-touches-low.html