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| Goldman sparks bank shares rally | Goldman sparks bank shares rally |
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| Financial stocks across Europe have risen sharply after US banking giant Goldman Sachs announced surprisingly good first-quarter results. | Financial stocks across Europe have risen sharply after US banking giant Goldman Sachs announced surprisingly good first-quarter results. |
| The stronger-than-expected results led to hopes that the global financial crisis may finally be starting to ease. | The stronger-than-expected results led to hopes that the global financial crisis may finally be starting to ease. |
| In London, Barclays and Lloyds Banking Group both closed more than 10% higher on the day. Major banks in France and Germany also made strong gains. | In London, Barclays and Lloyds Banking Group both closed more than 10% higher on the day. Major banks in France and Germany also made strong gains. |
| But Goldman's own shares slid 5%, despite its return to quarterly profit. | But Goldman's own shares slid 5%, despite its return to quarterly profit. |
| Wall Street shares in general lost ground for the second day in a row, after evidence that US retail sales continued to fall in March. | Wall Street shares in general lost ground for the second day in a row, after evidence that US retail sales continued to fall in March. |
| On Tuesday, one day after unexpectedly bringing forward its results, Goldman Sachs sold $5bn (£3.4bn) worth of stock, saying it planned to use the proceeds to help repay the $10bn bail-out it received from the government's Troubled Asset Relief Program (Tarp). | |
| Strong gains | Strong gains |
| In France, Credit Agricole shares climbed 9%, BNP Paribas rose 8.9% and Societe Generale added 4.8%. | In France, Credit Agricole shares climbed 9%, BNP Paribas rose 8.9% and Societe Generale added 4.8%. |
| In Germany, shares in Commerzbank rose nearly 13%, while Deutsche Bank added 4.7%. | In Germany, shares in Commerzbank rose nearly 13%, while Deutsche Bank added 4.7%. |
| It's not going to be pretty reading on the corporate results front this quarter Justin Urquhart Stewart, Seven Investment Management | It's not going to be pretty reading on the corporate results front this quarter Justin Urquhart Stewart, Seven Investment Management |
| The strong gains were due to the $1.8bn (£1.2bn) net quarterly profit announced by Goldman Sachs on Monday. | The strong gains were due to the $1.8bn (£1.2bn) net quarterly profit announced by Goldman Sachs on Monday. |
| The results were much better than analysts had expected. In the previous quarter, the bank had reported its first quarterly loss since going public in 1999. | The results were much better than analysts had expected. In the previous quarter, the bank had reported its first quarterly loss since going public in 1999. |
| However, despite its strong performance, the bank said trading conditions continued to be tough. | However, despite its strong performance, the bank said trading conditions continued to be tough. |
| "We continue to be cautious about the near-term outlook for our businesses," said chief financial officer David Viniar. | "We continue to be cautious about the near-term outlook for our businesses," said chief financial officer David Viniar. |
| The financial system still faces "extremely difficult macroeconomic conditions," he added. | The financial system still faces "extremely difficult macroeconomic conditions," he added. |
| Last week, Wells Fargo, another big US bank, announced that it would make a profit of $3bn (£2bn) for the first three months of 2009. This also sparked a rally in banking stocks. | Last week, Wells Fargo, another big US bank, announced that it would make a profit of $3bn (£2bn) for the first three months of 2009. This also sparked a rally in banking stocks. |
| However, Justin Urquhart Stewart at Seven Investment Management said the results from Goldman Sachs and Wells Fargo would not set the tone for further banking results expected later this month. | However, Justin Urquhart Stewart at Seven Investment Management said the results from Goldman Sachs and Wells Fargo would not set the tone for further banking results expected later this month. |
| "It's not going to be pretty reading on the corporate results front this quarter," he said. | "It's not going to be pretty reading on the corporate results front this quarter," he said. |