Goldman Sachs results expects to prop up US markets

Better than predicted financial results from Goldman Sachs have buoyed the markets in London, as traders expect US stocks to rise when trading begins.

Earlier this morning (June 17th), the investment bank Goldman Sachs reported net revenues of $9.42 billion and earnings of $2.09 billion for the second quarter of the year.

This meant that diluted earnings per common share jumped from $3.23 in the first quarter to $4.58 – well above earlier market estimates.

The news, coupled with the fact several important pieces of economic data are set to be published in the US later today, means that experts were predicting rises on Wall Street when the markets open.

Thomson Financial reported that Dow Jones Industrial Average is expected to open 39 points higher at 12,308.

It added that the expectations of US rises, which were also fuelled by a drop in the price of oil overnight, ensured that UK markets began the day positively.

At lunch (14:00) in London, the FSTE 100 was up 125.10 at 5,919.70 and the FTSE 250 had climbed 156.50 to 9,792.00.