Higher energy prices and uncertainty about interest rates as economic growth continues are making it difficult for equity markets. |
Higher interest rates are holding back the markets. |
Lower prices are hurting utilities and energy companies. Electricity prices are an enormous risk for utilities so we shouldn't be surprised by the response. |
M&A activity is driving the market. |
Markets have high hopes that the Fed will indicate that the tightening is almost over. This week's focus will be more than ever on economic figures. |
Media companies are coming from very far behind. |
Media is becoming much more important now that people have broadband at home and mobile telephones that can receive content. Media stocks are going to ride a wave of growth that is only beginning. |
The European markets will play catch-down this morning. Sentiment finally broke down after disappointing earnings releases and a further increase in the price of oil. |
The problem technically and psychologically is that we went ahead of ourselves. People have been chasing hot groups and hot stocks. |
They have to prove in their results that they can overcome the problems of oil and steel prices. The sentiment has been too optimistic. I don't see much potential. |
Uncertainty about interest rates will make meaningful progress difficult to achieve. This week will be big in terms of economic data and this can cause volatility in the market. |
Whether it happens today or on another occasion, the timing is uncertain but the fact that rates have to go up is clear. These things are priced in so I don't see much impact. |