INSTANT VIEW: Citigroup Q2 loss narrower than forecast

NEW YORK (Reuters) - Citigroup Inc (C.N: Quote, Profile, Research, Stock Buzz), the largest U.S. bank, on Friday posted a $2.5 billion second-quarter loss, suffering write-downs and credit losses tied to deteriorating credit markets and the slumping economy.

The net loss totaled 54 cents per share, and compared with a year-earlier profit of $6.23 billion, or $1.24 per share.

Citigroup said its loss from continuing operations was $2.22 billion, or 49 cents per share.

The loss was narrower than a consensus analysts' forecast of a 67 cent loss, according to Reuters Estimates.

Citi's results had been widely anticipated in markets globally, and the response the figures was swift.

U.S. equity index futures, which had been lower following a spate of earnings disappointments late Thursday from Google (GOOG.O: Quote, Profile, Research, Stock Buzz), Microsoft (MSFT.O: Quote, Profile, Research, Stock Buzz) and Merrill Lynch (MER.N: Quote, Profile, Research, Stock Buzz), turned positive, and the dollar strengthened broadly. U.S. Treasury debt prices fell, losing some of the flight-to-safety bid they'd had overnight, pushing the yield on the benchmark 10-year U.S. Treasury note <US10YT=RR> back over 4 percent.

The following is reaction from industry analysts and investors:

ANDRE BAKHOS, PRESIDENT OF PRINCETON FINANCIAL GROUP,

PRINCETON, NEW JERSEY: