Economics
This week we expect the US Federal Reserve to increase interest rates in line with its gradual monetary tightening scenario.
We expect a 25bp rise to 1.75%. In Europe French household spending for July and August should moderate while preliminary German states inflation for September may show an uptick.
In Japan the August trade surplus could have improved slightly as exports rise more than imports.
Foreign exchange
Euro/dollar: The consolidation between 1.1975 & 1.2325 goes on. Dollar/yen: Consolidation between 111.00 on the upside, and 109.00 on the downside.
Fixed Income
As we expected, yields were quite stable over the past week. Economic data were again rather mixed and some surprise came from the weaker-than-expected inflation and industrial production data.
The risks are more to the downside for yields in the coming week especially if the Fed would against expectations leave rates unchanged. We expect no change over the coming week.
Equities
Indices reached crucial technical resistance levels last week. Pressure on oil prices decreased a bit after the OPEC raised the production quota by 1 million barrels per day and hurricane Ivan left oil platforms in the Gulf of Mexico undamaged.
Profit warnings from majors like Coca-Cola, Campbell's Soup and Kroger caused a drop in US Consumer Staples. Fundamental weakness and the prospect of slowing economic growth confirm our defensive strategy.
Browse
related articles
Slowing growth requires defensive strategy
- Monday, September 20 - 2004 at 14:54
Related content
Fundamental weakness and the prospect of slowing economic growth confirm our defensive strategy for equities.
Article Options
InternaxxMonday, September 20 - 2004 at 14:54 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of AME Info FZ LLC / Emap Limited.
This article was updated on Sun Apr 22 2007.
Disclaimer »
The information comprised in this section is not, nor is it held out to be, a solicitation of any person to take any form of investment decision. The content of the AMEinfo.com Web site does not constitute advice or a recommendation by AME Info FZ LLC / Emap Limited and should not be relied upon in making (or refraining from making) any decision relating to investments or any other matter. You should consult your own independent financial adviser and obtain professional advice before exercising any investment decisions or choices based on information featured in this AMEinfo.com Web site.
AME Info FZ LLC / Emap Limited can not be held liable or responsible in any way for any opinions, suggestions, recommendations or comments made by any of the contributors to the various columns on the AMEinfo.com Web site nor do opinions of contributors necessarily reflect those of AME Info FZ LLC / Emap Limited.
In no event shall AME Info FZ LLC / Emap Limited be liable for any damages whatsoever, including, without limitation, direct, special, indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, or loss of use, arising out of or related to the AMEinfo.com Web site or the information contained in it, whether such damages arise in contract, negligence, tort, under statute, in equity, at law or otherwise.
Internaxx Disclaimer:
This content in this section was prepared by the research department of MeesPierson and Fortis Global Markets. This document does not constitute financial advice. If you require such advice, you should seek appropriate professional advice.
Internaxx accepts no responsibility for the content of in this section.
This content in this section was prepared by the research department of MeesPierson and Fortis Global Markets. This document does not constitute financial advice. If you require such advice, you should seek appropriate professional advice.
Internaxx accepts no responsibility for the content of in this section.
