It seems that the US at this point is getting its soft landing which is very good for the global market. The core inflation is still on a manageable or even a low level. Important considering inflation are expectations and the expectations are that the inflation will come back and that will help the market on the long side as long as the GDP not are strengthen up more than expected.
In the end of January Federal Reserve have there next meeting and as I been indicating earlier there seems that the FED will wait to cut interest till they know more about the GDP growth.
The jobless recovery that been something that been a fact for the last couples of years seems to be changing as well and is something that indicating to be changing when reports points out that it is harder for companies to find people.
The economy seems to be in the stage where company investments should take the global growth further. The companies have after 2000 till 2002 been a bit burned and therefore not investing as they should, though this seems to be changing and effects should be visible ahead.
The US deficit is another question that Ben Bernanke as well as Alan Greenspan a couple of times tried to get up on the agenda. The effect of the speech was only pressure back the market for a short while before it bounced back.
Another a bit surprising thing for the week was that Japan did not moved up there interest from 0.25% to 0.5%, but there seems to be just a matter of time till that is being done.
Global Stockmarket
This part will consider regions as the US, Europe, the Nordic region, Eastern Europe, South America and Asia. A strong global growth have been moving almost all markets to good result for 2006 and below is quick overview of areas for the 2007.
China, Europe and Eastern Europe where foremost Turkey been strong are markets that started of well in the beginning of 2007. I think it is among this we will find the winners for 2007.
Currency
Let the trend be your friend and keep on going short dollar. George W Bush doesn’t seem to have any interest to strengthen the dollar and this will not change what ever Ben Bernanke or other people say about the deficit.
This entry was posted
on Monday, January 22nd, 2007 at 6:10 pm and is filed under Weekly Market Update.
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