I am waiting for the (FTSE 100) hiccup -- that could be between 3-500 points -- 5,400 would look like a reasonable level to start buying again. |
I do not think stocks should have a bid premium built into them. That assumes that there is a good reason to buy them. |
I still doubt the sustainability of the equity momentum. However, we have now built a base that we will bounce off of, and that means 6,300 is definitely within sight. |
It is like there is a mental block. It is time for a correction down to 5,500 before we attack 6,000 again. |
It's a done deal. The ECB and Bank of England will leave interest rates on hold. |
Rates are not rising in Japan and domestic momentum needs to be rebuilt in the economy. At the same time the United States is faced with potentially more inflationary pressures and the Fed might need to tighten more aggressively. |
The Fed made it clear any impact from the hurricane would be temporary. If they don't stop at Katrina why should they stop at Rita? Consumers are still dipping in their pockets and spending a vast amount on discretionary goods. |
The market is focused on Rita to a great extent, but it is becoming a bit of normality so the market is not pricing in a further risk, |
The one thing that has worked against the equity market pushing higher is that the UK bond market has been hammered, and yields have subsequently risen. Before it was a one-way bet, but now people are having to be more thoughtful. |
The rate debate seems more alive than ever, so all the U.K. data will be important, |
The rate debate seems more alive than ever, so all the U.K. data will be important. |
There does seem to be this dichotomy of views with some saying the equity markets are still undervalued when others are saying that is not the case. |
There's no sign of recovery for the euro, ... There's not much the European Central Bank can do with strong oil prices and a weak euro adding inflationary pressure. It has prepared the market for a rate rise next Thursday -- we expect 25 basis points. |
There's no sign of recovery for the euro. There's not much the European Central Bank can do with strong oil prices and a weak euro adding inflationary pressure. It has prepared the market for a rate rise next Thursday -- we expect 25 basis points. |
They certainly have the resources to do it. They do have to consider diversification. It does make sense for them to look at it. |