World stocks fell from this week’s one-year high on Tuesday as investors grew cautious ahead of major third-quarter U.S. corporate earnings, while risk-hungry investors drove the Australian dollar to a 14-month peak.
Key results due this week include Intel (INTC.L), Goldman Sachs (GS.N) and General Electric (GE.N). Intel is expected to beat forecasts with its results later on Tuesday but some worry that corporate spending might not rebound until mid-2010.
According to Thomson Reuters data, the quarterly earnings contraction rate for the three months ending September — based on reported and estimated earnings — stands at 24.7 percent, compared with the contraction rate of 27.3 percent in the second quarter.
Earnings are expected to bounce back strongly to growth later this year with an estimated growth rate of a whopping 193.4 percent in the fourth quarter.
“There may be some corrections in this market, but you’re better off being in the market, for further gains,” said Bernard McAlinden, investment strategist at NCB Stockbrokers. MSCI world equity index (.MIWD00000PUS) fell 0.1 percent, after hitting its highest level since October 2008 on Monday. The index has gained more than 28 percent this year, recouping nearly two thirds of losses from last year.
The FTSEurofirst 300 index (.FTEU3) fell 0.3 percent, dragged by falls in banks.
Emerging Asian stocks (.MIAPJ0000PUS) hit a fresh 14-month high. Broader emerging stocks (.MSCIEF) were steady on the day. Hard money training
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