The global stock market catches its breath

The first week of 2007 was mostly a move sideways for the global market. After a strong ending of 2006 the market took a short pause but there seems to be a good idea to take position on the long time cause I think the market will probably keep on moving until the reports I starting coming in.

Global Stockmarket

The Nordic region, Europe, South America (focus on Brazil), Eastern Europe (Turkey excluded) and China is still my number one regions for 2007.

Not much have been moving in week number one though there could been seen that some money moving in to more defensive sectors. Raw materials have also had a weak start and it is mostly the warm weather that put some pressure on the oil.

The only thing that worries me is that it is not much to be worried for. The growth in most part of the world have higher numbers in the GDP than historical been difficult to maintain but it seems that China makes the global economy strengthen with maintaining low inflation.

Currency

The dollar have starting the year of 2007 to bounce back a bit from being in a weak trend for quite some time. If the FED decides to cut the interest the weak trend will probably be intact but if the inflation is coming back as well as the growth the FED will probably wait longer than the financial market thinks today to cut the rate which might holding up the dollar in the short run.

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