“Goldilock” in the global economy
Weekly Marketletter (7) 2007-02-12
Goldilock seems to be a fact…or at least everyone hopes so. Speculations the last week have considered if the slowing US growth is a “mid-cycle correction” cycle where the stockmarket are driving forward during the slow down. The risk is of course that the slow down is getting to slow and move the economy into a recession.
The market is strong and are keep on moving up though there will be a bounce, it always comes, it is just a matter of time. There is difficult to foresee what will take the market down but speculations if the slow down is healthy or if it is a coming recession might be worth putting some money on.
The Michigan Confidence index was helping the market while coming in strongest in two years time which will help the market when it comes to consuming in the next quarter.
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 weekly overview of selected areas in 2007.
This weeks winner was China and the Eastern Europe region overall with an move between 2-4%.
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 12th, 2007 at 7:22 pm and is filed under Weekly Market Update.
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