Argentina's problems seem to be mounting with negative consequences for the country's debtors and many quoted European companies. |
Earnings growth is still improving and Europe has the advantage to be late relative to the US economic cycle. |
For the last two days and the next few days, what's driving the market is the lack of bad news. This rebound could last two or three weeks. |
Iraq is the main worry. We've broken important technical support levels in the last couple of days as the market worries about growing geopolitical tensions. |
The high beta sectors, such as technology and basic resources, that have led the market rally since September 11 look somewhat overvalued. |