Over the weekend the ECB spoke out about keeping rates lower for indebted countries…all good ideas I am sure and with the latest stimulus packages just around the corner the US market roared back despite terrible volumes again.Our market has opened higher reflecting the better than expected Corporate results coming through and the general optimism around Equity markets again..I continue to believe that with the markets closing on that top of the range 4400 that the upside is somewhat limited despite all the talk around.I may be wrong..Time will tell.
The key will be Jackson Hole…here’s what Soc Gen have to say…..
We expect Bernanke to clearly signal that Q3 is in the pipeline and our expectation remains that this will be delivered at the 12-13 September FOMC.
A dovish tone from Bernanke should bring some re-assurance to markets. While the ECB has answered the question of how more risk sharing can take shape, they are not writing any blank checks. Conditionality is here to stay, and with it so too is sovereign risk until the conditionality is fulfilled.
If there is another round of easing then the likely big winners will be Gold and Silver..both travelling nicely at the moment…
Results season drawing to an end with a b plus grade I think..better than expected but not enough maybe to kick us to a new bull market…we will see.
Things to make me go all Armstrong.
1.Two great Armstrongs were in the news over the weekend..Lance and Neil…both are inspirational in their own ways…I will never forget watching the moon landings as a boy..RIP Neil…you will always be that Man on the Moon!
2.Sundance accepts the lower offer from Hanlong.
3.BBG still saying that the takeover bid is not enough but hard to justify given current results!
4.Ask not for whom the bell Tolls…profits take a hit and stock eases back…
5.Iron Ore still on the nose and more falls predicted in the price..so says Kloppers BHP Billiton chief Marius Kloppers expects ‘‘long-term’’ price declines for the miner’s commodities as slower economic expansion in China weighs on demand.
6.Samsung opened 6.75 per cent lower today after a US court fined the South Korean firm $US1.05 billion for breaching Apple’s patents.
7.China’s Premier Wen Jiabao urged extra measures to support exports and help meet economic targets as evidence mounts that the nation’s slowdown is deepening.
8.Chancellor Angela Merkel told officials in her coalition calling for a Greek exit from the euro to “weigh their words,” as she signaled a renewed determination to keep the single currency intact.
And finally…..During a ride in a taxicab, the rider touched the driver on the shoulder to ask him a question.
Upon the touch, the cab driver flinched, screamed, then went into a panic and almost wrecked the cab. Finally the driver got control and pulled to side of road.
Still shaking, he turned to his rider and apologized. He said, “Sorry about that. This is my first day as a cab driver. For the past 20 years I have driven a hearse”.
Back on Sky TV tomorrow afternoon at 4.30…
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