Markets in Europe are recovering as main indicators showed strong gains yesterday and signs that the rebound that started earlier this week will continue. The wake-up call arrived when results from China and the United States banking sector came in. These indicators showed a sharp correction thank to the Banco Espírito Santo crisis in Portugal.
In the US, JP Morgan, Goldman Sachs and Blackrock bested their earnings forecasts, and China is talking about positive economic development. Growth there accelerated by 7.5% during the second quarter in the midst of massive structural reforms there. While painful, they will surely help profits. Far from being the problem, China is starting to be the solution for global economic recovery.
