Yet another stockbroker

January is to an end and the stock market is keeping on moving up, why is that?

Mainly there is on the background of the surprisingly strong GDP growth in the fourth quarter where US as an example had a GDP growth of 3,5%, expected 3,0%. The strong growth combined with a low core inflation of 2,1%, close to FED:s goal of 2%. Strong growth combined with a low inflation, the market loves that. What worries is that the growth is holding up by private consumption, the company investments needs to come up to hold up the economic growth.

Housing market is another important issue has lately been moving on the downside in the US but is expecting to stabilize and some positivism has been showing.

The FED kept the interest on 5,25% on there meeting on the 31 January and was giving a brighter view of the economy growth and inflation. The ISM-Index though indicating that the economy will slow down as expected in the next couple of month.

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.

Another strong week for the global market with Turkey, Singapore and Germany in the lead. If we take a look on the one month developments Eastern Europe followed by emerging markets as India and Latin America is in the lead. Considering specific segment New Energy has been sailing up as a winner in the first month of 2007.

The speculative trading on raw materials as Copper and Zinc has resulting in prices in a historical volatile price range. The prices have at this stage coming back but there seems to be temporarily when the shortage of raw materials, to keep for example China and other emerging regions going, just won’t go away.

Currency

The short interest in the US has been coming up in the last 12 month but seems at this point to take a pause. The signals from FED indicate that inflation are under control. Considering that the expectations on interest influence where money goes the bounce in the dollar we been seeing the first month of 2007 is just short term strength and the dollar will keep on coming off.

This entry was posted on Monday, February 5th, 2007 at 12:37 am and is filed under Weekly Market Update. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.