US influence ups insurer shares. Fed expected to ease policy
Bank of America Merrill Lynch, upgraded its earnings estimate for Aviva’s 2010-2012 guidance by 2%, prompting Aviva share price to rise, and L&G shares rose on expectations from the US, Proactive Investor and the Guardian report.
“Aviva has shown that it is getting the message investors have been sending to sector management teams for some time ... H1 results came in above expectations”, Merrill Lynch said.
Monetary policy
Banks, insurers, US dollar and gold started to rise on expectations Fed will ease monetary policy.
Banks, insurance and fund management companies would benefit from more economic incentives as their income is directly linked to investors having more confidence in the financial markets. Legal and General added 3.6%, or 3.1p, to 90p.
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