Continuously weak dollar and the Balkan region is kicking
Volatility has been high the last week which creates uncertainty. The US housing market is still in focus and Standard & Poor reports that institutes focusing on subrime mortage loans have indicated that weak creditors having problem paying there loans. The weak housing market will follow us week by week the next couple of month though this is one of the most important issues if US should go in to a recession or not.
Other important issue is that the unemployment levels are not increasing so the consumption can be intact and help the US getting a soft landing of the economy. As long as there is only the weak creditors having problems there will not effect the US economy overall but if there is signs that the important US middle class person having problems it will have great effects on the US and the global economy.
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.
The first quarter is to an end and the strongest regions so far have been the Balkan region. Singapore been also moving up strong and looking at interesting sectors Shipping and New energy been remarkable strong.
Currency
No change in the strong momentum for the dollar to have another year when it will be taking off versus the most other currencies in the world. As mentioned before, expectations that the FED is getting closer to stop increasing the interest will help the dollar keep on coming off. The signals from the FED the last couple of weeks have though been difficult to interpret so that may keep the movement on hold till more information regarding the interest hits the market.
This entry was posted
on Monday, April 2nd, 2007 at 7:59 pm and is filed under Weekly Market Update.
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