Weak US growth takes the stock market off guard
The consuming are falling in the US which is a indicator that the weakness in the housing market is making consumers to hold on to there money. The US growth is 2,3%, the lowest since April 2003. The battle between the slowing growth and the rising inflation is the worst scenario possible and this might send mixed signals to investors which might gives us unsteady movements the coming months.
The important issue in the coming month will me the core inflation that FED is focusing on for taking any further steps adjusting the interest.
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.
Not a very strong week on the global stockmarket and the coming weeks might be weak for the market overall concerning the mixed signals in the macro statistics in the last weeks. FED will as well probably not cut interest any time soon which will keep the pressure on the US consumers.
Regarding raw materials copper is moving up and the downtrend where the copper coming of nearly 40% seems to have been coming to an end. China is back buying which is a good signal that this outbreak on the upside not is a false one.
This entry was posted
on Monday, February 26th, 2007 at 8:23 pm and is filed under Weekly Market Update.
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