The closely-watched US jobs report is due later on Friday, after results of stress tests late on Thursday revealed that ten banks need to raise up to $75 billion in fresh capital.
Experts tell CNBC that if the housing and labor markets decline further, banks will come under pressure again, but expectations are for a better jobs number for April.
Less Downbeat About Jobs
Robert Rennie, currency strategist at Westpac Bank explains why he is less downbeat about the U.S. jobless rate ahead of key non-farm payrolls data due out.
Expecting a Decline of 495,000 Jobs
Bill Smith, president, CEO and senior portfolio manager at SAM Advisors, is looking for figures of a decline of 495,000 jobs in April in the US. "You're starting to see better unemployment numbers coming through," he said.
Great Recession, Not Great Depression
Analysts are becoming more positive as many are upgrading their stock calls, rather than downgrading them, observed Clive McDonnell, regional strategist at BNP Paribas Securities. He tells CNBC that the global economy is facing the great recession, as opposed to the great depression before.
U.S. Economy at Bottoming Process
The U.S. economy is at an inflection point, says Selena Ling, head of treasury research & strategy at OCBC Bank. She tells CNBC that as a second-half recovery remains uncertain, any further deterioration to the housing and labor markets will lead to more stresses on the banking system and haunt the market again.
Wary of Dollar
The U.S. bank stress tests help remove uncertainty in the markets, notes Ashley Davies, FX strategist at UBS. He shares his forecast for non-farm payrolls data and explains why he is wary of the U.S. dollar.
IPOs to Pick Up in Next Two Months
China Zhongwang Holdings' debut on Friday marks the world's biggest IPO this year to date. Richard Sun, partner at PricewaterhouseCoopers, says the IPO market will stay sluggish before recovering in the second-half of 2009.
BofA Likely to Fail
Bank of America will overall fail as a conglomerate, says Bill Smith, president, CEO and senior portfolio manager at SAM Advisors.
The Stresses of BofA
Discussing the Bank of America's management considering it is seen as one of the most "stressed" banks in the US, with Bill Smith, president, CEO and senior portfolio manager at SAM Advisors
Stress Tests Shows $74.6 Billion Needed in Capital
The U.S. stress tests results were no surprise, says Bill Smith, president, CEO and senior portfolio manager at SAM Advisors. He speaks to CNBC about the $74.6 billion needed in additional capital for U.S. banks.
Implications of Stress Tests
The Obama administration did well in managing expectations with regards to the U.S. bank stress tests, says Jim Antos, head of research at Fox-Pitt Kelton.
Focus on Singapore Financials, Not US
Investors should steer clear of U.S. financials and focus instead on Asian banks in Singapore, said Paul Ramscar, assistant director of private clients at Tyche.
Bank Beginning to Look More Attractive?
Fox-Pitt Kelton has raised its rating on financials to 'marketweight' from 'underweight'. Mark Matthews, Asia Pacific strategist at Fox-Pitt Kelton explains his rationale.
Economic Gloom Set to Turn
We could be going through the trough of the recession and the next quarter could see flat growth, Mike Lenhoff from Brewin Dolphin Securities told CNBC. Mark Page from LV= Asset Management joined the discussion.