Brave New World

Alcoa kicks off Q3 earnings season 07/10/2009

US aluminium producer Alcoa has kicked off the earnings season with a bang by the looks of it, announcing a profit of 4 cents a share (excluding certain items), versus a consensus forecast of a loss of 9 cents. The company said the better than expected results were due to cost cutting and improved metal prices. One result does not move a market this result is bound to take equity markets, which have looked increasingly running out of positive sentiment, higher. The fallacy of a V-shaped recovery may have a little further to run, and with it a further upswing in risk appetite, ie a weaker US Dollar.