While European leaders agreed on a new treaty that member states must be rapidly towards greater economic integration and fiscal crisis is still raging in Europe and fears of a recession likely to affect the values on Wall Street.
Certain devalued companies on the stock market, such as Texas Instruments and DuPont, which have lowered their forecasts suggest that the impact of the European crisis are already felt across the Atlantic.
“We are beginning to feel the collateral damage of the situation in Europe, resulting in lower earnings forecasts,” said Peter Bookvar, strategist at Miller Tabak & Co.
The estimates of earnings growth of listed companies on the S & P 500 is the fourth in net losses since July. According to Thomson Reuters, the profits of these companies are expected to grow 10.1% in the fourth quarter against an estimate of 15% in early October and 17.6% in July.
Friday, Wall Street ended the session sharply higher, buoyed by the willingness of almost all countries of the European Union to show more fiscal restraint.
Countries in the euro area have launched a major overhaul which, after signing a new treaty to which only Great Britain has decided not to associate, to bring them rapidly towards greater economic integration and budget.
At the end of the sixteenth highest since the start of the debt crisis in late 2009 and after 10 hours of intense negotiations, they agreed on this new “pact”, which is based primarily on a tighter control of budgets and a limited reform of the future European Stability Mechanism (MES), which will now be supported by the ECB.
